Define: Disposable Income

UK Accounting Glossary

Definition: Disposable Income



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Full Definition of Disposable Income


Disposable income is money that can be spent, saved, invested or otherwise disposed of after taxes and certain other obligations (such as union dues, employer-mandated health care costs or other similar fees) have been paid. Another term for disposable income is take-home pay. Since most fees and taxes are beyond the control of workers, the only ways to increase disposable income is by a pay raise, working additional hours, developing an additional source of income or finding different employment at a higher rate of pay with more disposable income. An increase in disposable income is considered a sign of prosperity while a drop in disposable income is often a trailing indicator of an economic slowdown. Disposable income is also known as discretionary income or spendable income.


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Synonyms For Disposable Income


take-home pay, discretionary income, spendable income


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Disposable Income. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/disposable-income/ (accessed: February 19, 2020).
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Disposable Income. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/disposable-income/

Definition Sources


Definitions for Disposable Income are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.