Compensation of employees

The total remuneration, both monetary and in kind, payable by employers to employees in return for their work during the period. It consists of wages and salaries and of supplements to wages andsalaries (employer contributions for employee pension and insurance fundsand employer contributions for government social insurance). In theNIPAs, compensation is presented on an accrual basis—that is, it reflects compensation liabilities incurred by the employer in a given period regardless of when the compensation is actually received bythe employee.