HR Glossary

Disposable Earnings

By Katie Milner October 23, 2019 No Comments

What are Disposable Earnings? Definition below:

”Disposable Earnings refers to any income that is received after all obligatory deductions, such as taxes and social security, are met.

Although not legally required, disposable earnings are also used for garnishments, such as life insurance, investments, and retirement accounts. Since the amount of disposable earnings for these garnishments can be adjusted, they are not considered legally mandate. Therefore, the amount of income from disposable earnings can be used by an employee however he or she would like.

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Katie Milner

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