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RA 8425 of 1997 (Social Reform & Poverty Alleviation Act ) defines “Poor as individuals and families whose income fall below the poverty threshold as defined by the NEDA and/or cannot afford in a sustained manner to provide their minimum basic needs of food, health, education, housing and other essential amenities of life.”(Section 3 of the RA 8425)

Food Threshold  refers to the minimum income required for a family/ individual to meet the basic food needs, which satisfies the nutritional requirements for economically necessary and socially desirable physical activities.  Also referred to as the subsistence threshold or the food poverty line.

Poverty Threshold refers to the minimum income required for a family/individual to meet the basic food and non-food requirements:

Basic Non-Food Requirement includes: 1) clothing and footwear; 2) fuel, light and water; 3) housing maintenance and other minor repairs; 4) rental of occupied dwelling units; 5) medical care; 6) education; 7) transportation & communication; 8) non-durable furnishing; 9) household operations and 10) personal care and effects.

Subsistence incidence refers to the proportion of families/individuals with per capita income less than the per capita food threshold to the total number of families/ individuals.

Poverty incidence refers to the proportion of families/individuals with per capita income less than the per capita poverty threshold to the total number of families/individuals

Both subsistence incidence and poverty incidence can be expressed as proportion of families or proportion of individuals