Average Annual Pay Average Annual Pay Average annual pay is one way of gauging economic differences among areas of the country and within the state. By this measure, Huntsville ranks the highest of all Alabama metro areas, above the state average, and even above the national average. Average annual pay is not the same as average annual income.
Income accrues to people from sources other than pay.
Pensions and other retirement benefits contribute substantial income to some people, but this income is not pay. Dividends, interest, rentals, royalties, and profits provide income to many people, but neither is this income considered pay. Transfer payments are another big source of income that is not wage income. Transfer income includes such things as state unemployment insurance benefits, Medicare benefits, veterans' benefits, and many forms of public assistance. Other major exclusions from the series include most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organizations.