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Disposable vs net?

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  • 24-03-2017 3:35pm
    #1
    fiachr_a
    Banned (with Prison Access) Posts: 1,204 ✭✭✭


    Can anyone here explain disposable income and net pay? Are they the same or is there a difference (in Ireland)?


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    #2
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    Net pay is what you receive into your hand/bank etc.

    Disposable income is whats left after you pay all your essential bills such as rent/mortgage/food.

    Your disposable income can then be spent on non-essentials or saved.


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    #3
    Geuze
    Registered Users Posts: 13,086 ✭✭✭✭Geuze


    The CSO define disposable income as follows:

    Earned market incomes plus social benefits less direct taxes.

    So please note that in economics, disposable income is before you spend anything.

    In day to day language, people consider disposable income as after bills.

    But in economics, it is before any spending.


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