To explain more clearly let's use a possible example model. The amount of basic income in this model is the same that Portugese activists have proposed for their country - 435 euros. They believe this amount would be executable for Portugal. Estonian figures like GDP per capita and price level are very close to Portugal's ones. Tax levels are a little bit higher here than in their model. Additionally we assume that the basic income and related additional taxes are for those only who have the citizenship. Note: this is only an example model described especially for this article.

  • minimum wage before the basic income – 430 euros per month (2016, Estonia)
  • post-transition minimum wage as a result of wage pressure - 558 euros per month
    • foreigner's amount: national minimum wage + addition equal to the basic income (558+435, paid only by employer)
  • basic income - 435 eurot
    • not taken in account as an income
    • only for citizens and also those foreigners whose countries of origin have implemented the basic income as well (regardless of their amounts)
    • essentially this is a tax return (being until some point higher than paid taxes)
  • personal income tax amount 20%
    • retained form all income of citizens
    • tax allowance for non-citizens eqals to the basic income amount
  • citizen's social contribution 33%
    • a new tax to help cover the basic income costs
    • only for those who are eligible to get the basic income
    • allowance equals to the whole minimum wage to minimize the pressure on lower wages
  • pension insurance 2%
  • foreigner's unemployment insurance 1,6%