Disposable income

In the income distribution statistics and in the Household Budget Survey, households' disposable income included all salaries and wages, entrepreneurial income and property income (including imputed rent from owner-occupied dwellings and taxable sales profits from property), benefits in kind and current transfers received, from which sum, current transfers paid were deducted.

The formation of disposable income can be described as follows:

+ Wages and salaries
+ Entrepreneurial income
+ Property income (incl. imputed rent from owner-occupied dwellings and sales profits)
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= Factor income
+ Current transfers received (incl. imputed rent from a rental dwelling from another household)
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= Gross income
– Current transfers paid
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= Disposable income

Before the statistical reference year 2011, the income distribution statistics primarily utilised the concept of disposable income.

The imputed rent of owner-occupiers was regarded as factor income (property income) and imputed rent for a dwelling rented from another household as current transfers received in the income distribution statistics. Imputed rent is still formed in the income distribution statistics but from the statistical reference year 2011, it is treated as a separate income item (see "Imputed rent"). Similarly, taxable realised capital gains or sales profits are treated as a memorandum item according to international recommendations.

When social current transfers in kind are added to income, adjusted disposable income is obtained. This concept is not formed in the income distribution statistics.

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).