Households' adjusted disposable real income

Updated: 15 Mar 2021
Next update: 17 Dec 2021

Real adjusted disposable household income describes the amount of income available to households, including the value of welfare services. Welfare services are personalised services provided by the public sector or organisations for the benefit of households. Examples include education, health and social services.

Real adjusted disposable income is initially calculated at current prices, but it is usually expressed in real income terms, eliminating the effect of inflation. Furthermore it allows for better international comparability than household disposable income because welfare services are produced in different ways in different countries. In some countries households have to purchase a significant portion of these services on the open market, while in other countries (including Finland) these services are primarily funded from tax revenue.

Figures for real adjusted household income are produced three times a year. The data for each year are updated for a period of about two years after the end of the statistical year as well as in time series examinations, which are conducted less frequently. Data are also produced quarterly.

Adjusted disposable income of households also includes welfare services, i.e. services produced by general government and organisations for households. This adjusted disposable income grew at current prices by 1.0 per cent and in real terms, that is, adjusted for price changes by 0.3 per cent in 2020.