Financing Basic Income by Richard Pereira

Author:Richard Pereira
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

Clearing Payments and Scale

In order to make the system work smoothly, a system needed to be developed to allow increases in income for those with lower monthly salaries (in our view less than CHF 4,000 per month). Without this, there would be no incentive to improve performance (and therefore pay) at the lower salary levels and it avoids any income traps for those whose income could increase, for whatever reason. People obviously should not be punished for their efforts, above all in the sensitive area of low, “sub-decent” income. (Some people in this category are part-time working partners of those with a full income – but this is another story.) The scale we established is shown below (Table 3.2).Table 3.2 Earned income/month with BI at CHF 2,500/month and clearing payment scale

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