Household disposable income is the sum of household final consumption expenditure and savings.

Income includes wages and salaries, mixed income (income from self-employment and unincorporated enterprises), income from pensions and other social benefits, and income from financial investments. It is less taxes on income, wealth, social security contributions paid by employees, the self-employed and the unemployed, interest on financial liabilities, and the change in net equity of households in pension funds.

This indicator is presented as gross income with, and without social transfers in kind. "Gross" means that depreciation costs are not subtracted. Social transfers include health or education provided for free or at reduced prices by governments and non-profit institutions serving households (NPISHs).
NPISHs are non-profit institutions which are not predominantly financed nor controlled by government, whose main resources are voluntary contributions by households, and which provide goods or services to households free or at prices that are not economically significant. Examples include churches and religious societies, sports and other clubs, trade unions and political parties.

For gross household disposable income per capita, growth rates (percentage change from previous period) are real growth rates adjusted to remove the effects of price changes.

In the System of National Accounts, household disposable income including social transfers in kind is referred to as adjusted household disposable income. All OECD countries compile their data according to the 2008 System of National Accounts (SNA 2008).

This indicator is measured as percentage change per capita and in US dollars per capita at current prices and purchasing power parities (PPPs).