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Update HH net income calculation to subtract employee pension contrib#1410

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fix-hh-net-income
Nov 28, 2025
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Update HH net income calculation to subtract employee pension contrib#1410
MaxGhenis merged 1 commit into
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fix-hh-net-income

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@vahid-ahmadi
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@vahid-ahmadi vahid-ahmadi commented Nov 28, 2025

Fixes #1411

Summary

Updates household_net_income to subtract employee pension contributions, aligning with HBAI methodology.

Changes

  • Added employee_pension_contributions to the subtracts list in household_net_income

@vahid-ahmadi vahid-ahmadi self-assigned this Nov 28, 2025
@vahid-ahmadi vahid-ahmadi changed the title Update HH net income calculation to subtract employee pension contrib… Update HH net income calculation to subtract employee pension contrib Nov 28, 2025
@MaxGhenis
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Thanks for this fix! A few suggestions:

  1. Use pension_contributions instead of employee_pension_contributions - The pension_contributions variable already sums both employee_pension_contributions and personal_pension_contributions, which matches HBAI methodology. This is cleaner:
subtracts = [
    "household_tax",
    "pension_contributions",
]
  1. The formula doesn't use the subtracts attribute - Currently the formula explicitly calculates market_income + benefits - tax, ignoring the subtracts list. Either:
    • Update the formula to also subtract pension contributions, OR
    • Remove the formula entirely and let OpenFisca use the adds/subtracts attributes

See #1411 for full analysis and justification.

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LGTM - correctly subtracts pension_contributions (employee + personal) from household_net_income, aligning with HBAI methodology.

- Changed from employee_pension_contributions to pension_contributions
  which includes both employee and personal pension contributions
- Updated formula to actually subtract pension contributions
- Aligns with HBAI methodology

Fixes #1411

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude <noreply@anthropic.com>
@MaxGhenis MaxGhenis merged commit d1624a6 into master Nov 28, 2025
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@MaxGhenis MaxGhenis deleted the fix-hh-net-income branch November 28, 2025 14:15
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Subtract employee pension contributions from household_net_income

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