People on the living wage benefit and minimum wage will be most badly affected.
A single mother with one child will receive a living wage benefit of 13,000 euros before tax per year, but will lose 888 euros in spending power - some 6.7%.
A working couple with two children that have one full-time job and one half-time job paid at minimum wage rate will make 31,500 euros before tax, but lose 700 euros or some 3%. Pensioners too will have to get by with 480 euros less in 2016.
The governments have promised social corrections for people on the lowest incomes, but poverty activists wonder what will happen to the larger number of people who do not belong to this group. They conclude that poverty and inequality will grow.