Rent-free house given to an employee by an employer included/excluded in National Income
Determine the following item included/excluded in the National Income
Rent-free house given to an employee by an employer included/excluded in National Income
Anurag Pathak Changed status to publish December 7, 2023
Yes,
It is included in the national income by Income Method since it is a part of ‘Wages in Kind’ paid to employees.
Explanation:-
A rent-free house is one of the item of Wages in Kind. Wages in Kind is one of the item of compensation of employees.
It is included in the national Income by Income Method.
Compensation of employees is the factor payment received by households in return of their factor services in the production process.
It adds to the flow of goods in an economy.
Anurag Pathak Changed status to publish December 7, 2023
