Household Gross Disposable Income

Household Gross Disposable Income is the money available to satisfy people’s needs and wants (for Personal Consumption Expenditure), and to add to Household wealth (increasing Fixed Capital Assets or Financial Assets). It is therefore an important indicator of whether households are becoming better off or worse off.

Disposable income includes all income:

• Wages and Salaries
• Gross Mixed Income of the self-employed
• Imputed Rent
• Interest, dividends and other Property Income received
• Social protection payments and pension payments received
• Miscellaneous transfers such as remittances from abroad.

However, disposable income is after some payments have been deducted:

• Interest paid
• Social contributions (such as PRSI) and pension contributions
• Tax like income tax, capital gains tax and Universal Social Charge
• Miscellaneous transfers like donations and subscriptions to Non-Profit Organisations

We talk about ‘Gross’ Disposable Income because this is before any depreciation or Consumption of Fixed Capital (CFC) has been deducted. Gross Disposable Income minus CFC is Net Disposable Income, but we usually talk about the 'Gross' rather than 'Net' Disposable Income in Ireland's National Accounts.

Household Disposable Income is an indicator of whether people have more money coming in each year, but if their expenses are also rising they are no wealthier at the end of it. For this reason, Household Saving is also an important indicator of economic wellbeing.

Read next: Adjustment for the Change in Pension Entitlements

A-Z of National Accounts

Topics by Theme