The authors research the lowest stratum in modern Russia, consider the key approaches to determine poverty, analyse the applied criteria, and their relevance. The lowest stratum of the Russian society is a heterogeneous entity. Its structure and definition of boundaries remain controversial. The research problem involves the contradiction between theoretical approaches to the study of poverty extent, and the practice of social policy aimed at poverty reduction. One of the weaknesses of this

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... cy is that the state takes into account the subsistence level as the only poverty criterion. In the article, the relevance of this criterion is analysed, its inconsistency under contemporary economic realities is shown. The major aspects of scientific research of poverty are explored, poverty criteria in Russia and in developed countries are compared, and main social characteristics to determine whether an individual belongs to the lowest stratum of Russian society are given. The structure of the lowest stratum and its restructuring are described. The real values of poverty in Russia which vary from 13.3% (official statistics) to 41% (independent studies) and the ways for its reduction are determined.