Compensation Of Employees

Categories: Economics,

Compensation of employees is the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the latter during the accounting period. Compensation of employees has two main components: (a) Wages and salaries payable in cash or in kind; (b) The value of the social contributions payable by employers: these may be actual social contributions payable by employers to social security schemes or to private funded social insurance schemes to secure social benefits for their employees; or imputed social contributions by employers providing unfunded social benefits.