Abstract
The article examines a level-based approach to assessing components of students' functional literacy, one of the key indicators of modern education quality. The author emphasizes the distinction between basic and functional literacy, highlighting that the latter reflects the ability to apply knowledge and skills in real-life situations. Particular attention is given to the analysis of the international PISA study, in which reading literacy is considered a key component of functional literacy. The article provides a detailed description of the levels of reading competence, assessment criteria, and the structure of tasks based on real-life contexts. It also explores the characteristics of texts used in the tasks and the approaches to diagnosing reading skills: information retrieval, interpretation, reflection, and evaluation. The author stresses that the systematic use of a level-based approach enables not only an objective assessment of students' educational achievements but also the development of skills necessary for successful adaptation in modern society. The conclusions presented can be used to improve educational policy and the practice of developing functional literacy in schools.