Disposable household income

Disposable household income is defined as gross income from labour, business activities, personal capital, social benefits and received transfers minus paid income transfers, contributions paid by employers, health care contributions and tax on income and personal capital.

Standardised disposable household income

The disposable household income adjusted for the differences in household size and composition. All incomes are reduced to the income of a one-person household using the OECD equivalence scale. In this way the prosperity levels of households have been made comparable. Therefore, standardised income can be used to measure the prosperity level of a household or its members.