Classification of components of Income-based Gross Domestic Product

1 - Compensation of employees

Compensation of employees' refers to the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter during the accounting period. Compensation of employees is recorded on an accrual basis; that is, it is measured by the value of the remuneration in cash or in kind that an employee becomes entitled to receive from an employer in respect of work done during the relevant period, whether paid in advance, simultaneously or in arrears of the work itself. In the production account, compensation of employees is the cost of labour services.