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French Equivalent: Rémunération des salariés

Compensation of employees is defined as 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. Taxes less subsidies on production consist of taxes payable or subsidies receivable on goods or services produced as outputs and other taxes or subsidies on production, such as those payable on the labour, machinery, buildings or other assets used in production.

Compensation of employees has two main components:

(a) Wages and salaries payable in cash or in kind;

(b) Social insurance contributions payable by employers, which include contributions to social security schemes; actual social contributions to other employment-related social insurance schemes and imputed social contributions to other employment-related social insurance schemes.

No compensation of employees is payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees does not include any taxes payable by the employer on the wage and salary bill - for example, a payroll tax. Such taxes are treated as taxes on production.

Source Publication:
System of National Accounts (SNA), 2008. 7.5., 7.14., 7.42.

Cross References:
Compensation cost


Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Friday, April 12, 2013