The working poor are the employed persons living in households with incomes below the nationally-defined poverty line.
The poverty line is defined as the threshold below which individuals in the population are considered poor and above which they are considered non-poor. The threshold is generally defined as the per-capita monetary requirements an individual needs to afford the purchase of a basic bundle of goods and services.
Household income consists of all receipts whether monetary or in kind (goods and services) that are received by households and their individual members at annual or more frequent intervals. Household income arises from employment (both employee and self-employed), property income (interests, dividends, rents received, royalties), income from the production of household services for own consumption (owner-occupied housing), current transfers received from governments, non-profit institutions and other households.
Disposable income, the concept which should be used to report on poverty and income distribution, is defined as total income less direct taxes (net of refunds), compulsory fees and fines, social security contributions as well as compulsory and quasi-compulsory inter-household transfers paid.
Source: ILO (International Labour Organisation): Key Indicators of the Labour Market, 9th edition.