List of Components of Income, Household Sector

1 - Compensation of employees

'Compensation of employees' refers to the total remuneration, in cash or in kind, payable to all employees 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 productivity analysis, compensation of employees is equivalent to the cost of labour services. Compensation of employees includes compensation of employees of enterprises and that of employees of all resident households.

2 - Net mixed income

'Net mixed income' refers to gross mixed income less consumption of fixed capital. For unincorporated enterprises, it may not be possible to estimate compensation of employees, consumption of fixed capital and a return to capital separately, in which case an estimate of mixed income, covering all these items, should be made. In practice, all unincorporated enterprises owned by households that are not quasi-corporations are deemed to have mixed income as their balancing item, except owner-occupiers in their capacity as producers of housing services for own final consumption, households leasing dwellings and households employing paid domestic staff. For owner-occupiers and those leasing dwellings, all value-added is operating surplus. For domestic staff, all value-added is compensation of employees (unless any taxes or subsidies on production are payable or receivable on the output).

3 - Property income received

'Property income received' refers to the total receipts of property income. Property income accrues when the owners of financial assets and natural resources put them at the disposal of other institutional units. The income payable for the use of financial assets is called investment income while that payable for the use of a natural resource or land is called rent. Property income is the sum of investment income and rent.

4 - Current transfers received

'Current transfers received' refers to the total of current transfers received. A current transfer is a transaction in which one institutional unit provides a good or service to another unit without receiving any good or service directly in return and does not oblige one or both parties to acquire, or dispose of, an asset.