The new classification is designed to help implement the poverty reduction strategy.

The Ministry of Social Policy, the Ministry of Economic Development and Trade, the Ministry of Finance, the State Statistics Service and the National Academy of Sciences (NASU) approved the methodology for integrated poverty assessment. This is stated in the joint order of departments, Ukrainian News.

It is noted that the methodology was developed to implement the poverty reduction strategy.

The methodology provides for the identification of 3 groups of poverty measurement criteria.

1st group (main monetary poverty criteria): total equivalent expenditures of the person below 75% of the median level of per capita equivalent total expenditures; The total equivalent expenditures of a person are lower than the actual (estimated) subsistence minimum per capita; The total equivalent incomes of a person are lower than the actual subsistence minimum per capita; The total equivalent incomes of a person are lower than the statutory minimum subsistence level per month on average per person.

For the basic monetary poverty criteria, the following indicators are calculated: the aggregate income deficit of the poor; Average income deficit of the poor; The depth of poverty.

2nd group (other monetary poverty criteria): the equivalent costs of the person are below the poverty line defined by the United Nations (UN) for the countries of Central and Eastern Europe as the hryvnia equivalent of 5.05 dollars in accordance with purchasing power parity; Per capita equivalent income of a person is below 60% of the median level of per capita equivalent income according to the European Union equivalence scale.

3rd group (non-monetary poverty criterion): presence in households due to lack of funds 4 out of 9 signs of deprivation (reduction or total deprivation of the ability to meet basic needs).

According to the EU methodology, signs of deprivation include: the presence in households of debts for the payment of a mortgage loan or lease payments, utility bills, payments for the purchase of goods and services for payment or other payments on loans; The inability of the household to pay a weekly annual leave away from home;

Inability to pay for maintaining the proper temperature in the home; Inability to pay for consuming dishes with meat, chicken, fish (or their vegetarian equivalent) every other day; Inability to pay unexpected financial costs from own resources (in the amount of a statutory minimum subsistence level per month on average per person); Inability to afford to have a telephone (including mobile); Inability to afford to have a color TV; Inability to afford to have a washing machine; Inability to afford a car.