Overhead costs that programmes incur in order to operate. In the tool, this is measured as a percentage of programmes' total transfer value. Administrative costs usually range between 5% and 15% of a programme's transfer value, depending on its complexity.

The monthly amount of benefits provided to the recipients of a scheme.

A social protection programme that distributes cash benefits to the parents or guardians of children. Child benefit programmes can involve benefits in cash and/or in kind, which can be unconditional or subject to the family complying with conditions such as child's school attendance. The global average benefit level is 4% of GDP per capita.

The amount spent each month by households on goods and services in order to meet their needs. It is commonly used as a measure of household economic welfare.

Consumption per capita corresponds to total household consumption expenditure divided by number of household members.

Programme coverage refers to the share of individuals reached by the programme out of all eligible individuals. For instance, if a disability benefit schemes achieves 100% (universal) coverage, it means it reaches all eligible persons with disabilities. In the case of universal child benefits and old age benefits, 100% coverage is achieved when all individuals in the relevant age cohorts receive benefits.

Individuals in receipt of social protection benefits.

A social protection programme that distributes cash benefits to persons with disabilities. Depending on the approach adopted, a person can be recognised as having a disability based on impairments, functional limitations, or ability to carry out daily tasks. For the purpose of the simulator, persons with disabilities are defined as individuals living with moderate or severe functional limitations. The global average benefit level is 14% of GDP per capita and the OECD average benefit level is 23% of GDP per capita.

The increase in the value of the goods and services produced by a country over time, typically measured by annual change in gross domestic product (GDP).

Rules that determine whether individuals or households are eligible to receive benefits. These typically include being below a certain age for child benefits, above a certain age for old age benefits, having proven functional difficulties for disability benefits. They may also include living on less than a certain income (see Means tested programmes) or not being in receipt of benefits from contributory schemes (see Pension tested programmes).

Within the tool, the 'existing schemes' scenario corresponds to the status quo, i.e. the current situation as captured by the latest available household survey. Poverty and inequality measured under the 'existing schemes' scenario incorporate the impact of any existing social protection schemes. If no existing schemes were identified in the microdata, the 'existing schemes' scenario corresponds to the 'no schemes' scenario.

The flexibility of a government in its spending without compromising its ability to meet its payment obligations (debt sustainability).

Functional expenses refer to public spending by government function. The United Nations Statistics Division defines (higher level) functions of government as: (1) general public services, (2) defence, (3) public order and safety, (4) economic affairs, (5) environmental protection, (6) housing and community amenities, (7) health, (8) recreation, culture and religion, (9) education and (10) social protection. The tool reports current government spending on social protection (all the existing programmes), excluding the simulated programme(s).

Gross Domestic Product, the value of goods and services produced within a country in a year.

A measure of the degree of inequality in the welfare distribution. It can be conceptualised as ratio of the area between the Lorenz curve (which depicts the percentage of income owned by a given share of the population) and the 45-degree line (which represents perfect equality), and the area below the 45-degree line. The index assumes values from 0 (complete equality) to 1 (complete inequality).

Document that summarises government revenues and expenses. Governments can achieve a balanced budget (revenues are equal to expenditures), a deficit (expenditures exceed revenues) or a surplus (revenues exceed expenditures).

Money received by a government from taxes and non-tax sources, which enables government spending.

A means-tested social protection programme which distributes cash benefits to households, rather than individuals. Typically, transfers will be collected by one designated household member.

Individuals who live with a programme recipient.

Programmes that require recipients to be living below a certain level of income or wealth.

Within the tool, 'no schemes' refers to a scenario in which simulation is carried out such that there are no existing social protection schemes in the country. When a country does not have any of the relevant schemes in place, the 'no schemes' scenario is equivalent to the 'existing schemes' scenario.

A social protection programme that distributes cash benefits to persons above retirement age (which may vary across countries). Also referred to as 'social pension', not to be confused with contributory pension schemes. The global average benefit level is 16% of GDP per capita and the OECD average benefit level is 22% of GDP per capita.

A measure of inequality in the welfare distribution. It corresponds to the ratio of the average income of the richest 10% of the population to the average income of the poorest 40%. It assumes positive values, usually over 1 (and below 10), indicating that the richest 10% owns more resources than the poorest 40%.

Old age benefit schemes providing benefits to individuals that not only meet the age eligibility criteria but are also not otherwise in receipt of (a sufficient) income from at least one other old age pension.

Within the tool, 'post reforms' refers to the scenario in which the presence of social protection schemes is simulated, based on the parameters entered by the user.

Index that captures the intensity of poverty, estimated as the average of the ratio between the poverty gap (poverty line minus income) and the poverty line.

Minimum welfare level necessary to be considered not poor in a particular country or context. National poverty lines are usually calculated as the minimum resources necessary to achieve an adequate calorie intake (food poverty line or extreme poverty line) plus the minimum non-food resources to cater for basic necessities. Alongside national poverty lines, the World Bank elaborated a set of international poverty lines, expressed in purchasing power parity US dollars to allow for international comparisons. These correspond to $1.90, $3.20, and $5.50 per day.

Share of individuals whose welfare level (consumption) is below the poverty line. Also referred to as 'headcount ratio'.

Government expenditure (see functional expenses).

A measure of inequality in the welfare distribution. It corresponds to the ratio of the average income of the richest 20% of the population to the average income of the poorest 20%. It assumes positive values, usually over 1, indicating that the richest 20% owns more resources than the poorest 20%.

The inflation-adjusted rate at which the value of goods and services produced by a country grows from year to year.

Household in which at least one member receives benefits from the scheme considered.

Household with at least one child (below 18) and one older person (aged 60 and over) but no working age adults (18-59).

According to the ILO, social protection (or social security) is understood as a collection of policies and measures that reduce income insecurities and prevent vulnerabilities across the lifecycle. A social protection system should ensure that all individuals during the course of their life, at the very least, have an adequate standard of living. Social protection schemes should reduce and prevent poverty and vulnerability, as well as provide a buffer against contingencies across the lifecycle and environmental shocks. Typically, social protection programmes include child or family benefits, disability benefits, unemployment benefits and old age pensions

Percentage at which an individual or a business is taxed. Within the tool, taxes to individuals are referred to as 'income taxes' and taxes to businesses are referred to as 'corporate taxes'.

Money received by a government from taxes.

Household with at least one child (below 18), one working age adult (18-59) and one older person (aged 60 or over).

Household welfare or living standards can be captured in terms of income, consumption expenditure, or self-reported measures. Except for the Philippines (for which income is used), the tool uses household consumption expenditure as the welfare measure on which the simulations are based.

Household are ranked from poorest to richest based on consumption expenditure and divided into ten equally sized groups, each containing 10% of the households. The bottom decile corresponds to the poorest 10% of the households while the top decile corresponds to the richest 10%.