Based on following paragraph answer the question :

What will be compensation of employees ?

Wages and salaries in cash + wages and salaries in kind + Employer's contribution to social security schemes

The correct answer is option (3) : Wages and salaries in cash + wages and salaries in kind + Employer's contribution to social security schemes

Compensation to employees refers to the remuneration paid by an employer to his/her employees for their productive services. It includes all monetary and non-monetary benefits that employees receive, directly or indirectly. It comprises of 3 elements, these are –

Wages in Cash:It consists of every monetary benefit, such as wages, bonuses, commissions, dearness allowance, etc.

Wages in Kind: This includes every non-monetary benefit that employees receive from their employers, like home, car, medical and educational facilities. The imputed value of such benefits should be included in national income.

However, facilities which are necessary for work and employees have no discretion in it should not be included here. For instance, uniforms that employees use, or vehicles used for business purposes, etc. Such facilities are considered as intermediate consumption.

Employer’s Contribution to Social Security Schemes: It includes the contribution employers make in social security plans such as employees provident fund, gratuity, pension plans, etc.