Disposable income is the balancing item of the current income in the redistribution of income account. It is obtained for each sector by adding current transfers receivable to primary income and by deducting all current transfers payable. It can be used for consumption or saving. (ESA 8.31).
Adjusted disposable income is a corresponding item in the redistribution of income in kind account.
Statistics using this definition
In national accounts, disposable income is the balancing item of the current income in the secondary distribution of income account. It is obtained for each sector by adding current transfers receivable to primary income and by deducting all current transfers payable. It can be used for consumption or saving.
Adjusted disposable income is a corresponding item in the redistribution of income in kind account.
Regional household accounts deviate from national accounts in that they include profits and losses from sale of property and income from incentive options. These items are included, as they contribute significantly to regional differences in household income.
If required, the data on disposable income are also available precisely in accordance with national accounts.
Statistics using this definition
The key income concept in the income distribution statistics is disposable income, which is also used in the Household Budget Survey. The formation of disposable income can be described as follows:
+ Wages and salaries
+ Entrepreneurial income
+ Property income
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= Factor income
+ Current transfers received
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= Gross income
Wages and salaries include income paid for households as pay - either in money or benefit in kind. Income from incentive stock options is included in the income concept in benefits in kind and thus in wages and salaries.
Entrepreneurial income includes income from agriculture and forestry, business activity and business group and copyright fees. Entrepreneurial income in agriculture also contains various subsidies and compensations such as agricultural subsidies, European Union agricultural aid and compensation for harvest losses.
Property income is rental, interest and dividend income received by households, imputed net rent from an owner-occupied dwelling, taxable capital gain and pensions based on private insurance and other income.
Current transfers received comprise earnings-related pensions and national pensions and other social security benefits, social assistance and other current transfers received.
Current transfers paid comprise direct taxes and social security contributions. In addition, current transfers paid comprise compulsory pension and unemployment insurance premiums and in the income distribution statistics also child maintenance support paid.
The key income distribution statistics concept, disposable income, is arrived at when current transfers paid are deducted from gross income. The concept of disposable income in the Household Budget Survey is based on register data, and does not, differing from the income distribution statistics, include wages and salaries subject withholding tax and tax-free interest income and current transfers between several households (e.g. child maintenance support).
Statistics using this definition
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