The rent subsidy, which was decided by the Tripartite Agreement, will come into force next month, after the bill was passed in the Chamber of Deputies on Thursday.

The agreement targets households which are most vulnerable to the current inflation rates and is calculated based on household income and composition, after taking into consideration the rise in energy prices and the evolution of the rental market.

Read also: The main measures to boost purchasing power, from tax credits to rent subsidies

Alongside the increase in the value of the subsidy, the agreement also seeks to widen the access criteria for tenants, particularly allowing for single-parent families to gain access to further financial support. The amounts allocated to eligible households will increase by an average of 50% compared to current benefits.

A single, childless person is now eligible to receive a €200 premium if their monthly income does not exceed €3,126.83. A childless couple could be eligible for subsidies worth €280 if the household income does not exceed €4,800.49.

As the subsidy is adjusted based on individual households' monthly income, families with one child are eligible for a subsidy of €320, for an income below €5,664.27; while families with two children will receive €360 if their income does not exceed €6,405.55 per month.  The subsidy will be capped at €400 for families with 3 or more children, if their monthly income does not exceed a minimum of €6,960.63.

The above will come into force on 1 August 2022.

According to the housing ministry's findings, in 2019 more than a third of renting households (34.5%) allocated over 40% of their monthly income to paying rent and other housing charges.