Employee compensation by activity

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Employee compensation has two components: wages and salaries payable in cash or in kind, and the value of social contributions payable by employers. The former include the values of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer and paid on behalf of the employee. The latter may be the actual social contributions payable by employers to social security programmes or to private funded social insurance programmes to secure social benefits for their employees; or imputed social contributions by employers providing social benefits through unfunded programmes. Compensation of employees is not 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 excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax, fringe benefits tax). This indicator is broken down by agriculture (including forestry and fishing), industry and services. It is measured as percentage of gross value added. Data are under System of National Accounts (SNA 1993) for all countries except for Australia and United States (SNA 2008).

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Employee compensation by activity

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Definition of
Employee compensation by activity

Employee compensation has two components: wages and salaries payable in cash or in kind, and the value of social contributions payable by employers. The former include the values of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer and paid on behalf of the employee. The latter may be the actual social contributions payable by employers to social security programmes or to private funded social insurance programmes to secure social benefits for their employees; or imputed social contributions by employers providing social benefits through unfunded programmes. Compensation of employees is not 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 excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax, fringe benefits tax). This indicator is broken down by agriculture (including forestry and fishing), industry and services. It is measured as percentage of gross value added. Data are under System of National Accounts (SNA 1993) for all countries except for Australia and United States (SNA 2008).

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Further indicators related to Earnings and wages

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