If a economic term that we should all know, that is the personal income. Normally, it is one of the key concepts within the macroeconomía, but it should also be a term present in life and economía doméstica. The reason is that Personal Income is that income received by individuals and companies that are not constituted as a commercial company. If we transfer it to the macroeconomic world, Personal Income corresponds to the part of national income received by individuals.
How is personal income calculated?
To calculate the ingresos The personal data of the individuals are taken into account both the main sources of income and the contributions that are paid individually. Wages and salaries are the sources of benefits that have the most weight when calculating personal income, since they account for around 55%. However, these earnings must be subtracted from various taxes and payments in order to obtain the total personal income.
In macroeconomic terms, Personal Income calculations are made by subtracting undistributed profits by companies (Bnd), taxes on profits (Tb) and Social Security contributions (CSS) from net national income (RNN) , to later add the transfers from the State to the domestic economies (TR).
The exact formula for calculating personal income would be:
Personal income (RP) = net national income (RNN) - profits not distributed by companies (Bnd) - minus taxes on profits (Tb) - minus contributions to Social Security (CSS) + transfers from the State to household economies (TR).
In addition to total personal income, there is the available rent, which is the amount of money that families or companies have to spend or save after subtracting the expenses corresponding to impuesto or domestic fees, and even penalties.