Components of Balance of International Payments, Current Account

• 2 - Primary income

2.1 - Compensation of employees

'Compensation of employee' includes 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 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.