Definition
Household income
Household income is the sum of cash income and income "in kind" and consists of receipts which, as a rule, are of a recurring nature and accrue to the household or to individual members of the household regularly. Household income is derived from the following main sources: employees' salaries, wages and other related receipts from employers, income receive as profits from own-account or family business, income from personal investment (rent, interest and dividends) and royalties. For purposes VPS it is convenient to include as income, the bonuses and gratuities, pensions, social security benefits, tuition fee, other subsidiary sources, receipts from zakat, usher, scholarships, and other periodical receipts like remittances from overseas, alimony, in heritage or trust fund.
Household income "in kind" includes wage payments in kind, goods and services transferred free of charge by an enterprise (including farm) to an employee and to the household of the owner or part owner of the enterprise; it also includes the value of home produced and consumed within the same household (e.g. agricultural products, livestock products). Where an employee buys from his employer, for his household consumption, goods and service at concessionary prices and thus obtains a significant advantage, the value of these concessions may also be taken into account as income "in kind". Remittances in kind, gifts and assistance, zakat and other transfers in kind are considered income "in
kind". The estimated net rental value of owner-occupied housing is in principle also to be treated as income "in kind" and, similarly, the estimated gross rental value to the occupier of rent-free housing, whether obtained as wages "in kind" or otherwise.
Income "in kind" is included in the questionnaire indirectly through questions on unpaid consumption expenditures (Q. 17, 20, 21 and 22 in the type-column in forms 8 They are classified in four categories:
a) wages and salaries in kind and consumed (Q. 17);
b) own produced and consumed (Q. 20);
c) property income (Q. 21); and
c) received from gifts, assistance and other sources (Q. 22).
Wages and salaries in cash
For VPS purposes, this concept relates to earners' net remuneration or net pay from their occupations.
It includes:
a) Direct wages and salaries for time worked, or work done
b) Remuneration for time not worked comprises direct payments to employees in respect of public holidays, annual vacations and other time off with pay granted by the employer.
For purposes of this survey the wages and salaries in cash concept does not cover:
a) Employers' contributions for their employees paid to social security, provident fund and pension schemes and also the benefits received by employees under these schemes;
b) Payments "in kind" which are treated separately. Other incomes (in cash and kind) Bonuses and gratuities cover seasonal (e.g. Eid bonus) or end of-year bonuses, additional payments in respect of vacation periods (supplementary to the normal pay) and the profit-sharing bonuses paid by the employers to the employees.
Pensions usually refer to recurrent periodical payments received by a person after retirement from government service, private or public enterprise due to past contributions into a pension scheme.
Social security benefits are payments made at recurrent intervals to individuals under a social security scheme. This may include benefits for medical care, sickness, unemployment and old-age, employment
injury, etc.
Income receipts from lodgers and boarders include the cash receipts in return for living quarters and food provided.
Profits (interest) are additional moneys received and paid in respect of banks, post offices and other deposits, bills, bonds and other loans paid and received.
Rent is the actual money income paid and received for the use of land, buildings (commercial and dwellings), plant, machinery and other equipment, furniture and fixtures, office equipment and other assets. For purposes of Vulnerability and Poverty survey, property rented by the household to be used for common household facilities is treated under household consumption expenditure, e.g. rent paid for household dwelling. Receipts and payments for land and other properties are kept separate as these constitute different types of payments in national accounting terms.