Disposable Earnings

Disposable earnings, also known as disposable personal income, is a measure of a person’s ability to manage essential household costs after mandatory taxes have been deducted from gross earnings. It indicates how much money the employee has left over to spend or invest.

Disposable income reflects the financial status of an individual or household and their ability to pay for essential commodities. Negative disposable income shows that the individual is borrowing money to keep up with basic expenses.