Which one of the following is not included in compensation of employees?
Which one of the following is not included in compensation of employees?
(a) Festival gift from the employer
(b) Hosue rent allowance to employees
(c) Free medical facilities by the employer
(d) Payment of bonus to employees
Anurag Pathak Changed status to publish December 14, 2023
Ans – (a)
Explanation:-
A Festival gift from the employer is the transfer payment as employees do not provide any productive (factor) services against it.
House rent allowance and payment of bonus to employees are part of wages and salaries in cash. Free medical facilities by the employer are part of wages and salaries in kind.
Wages and salaries in cash and kind are the components of compensation of employees.
Anurag Pathak Changed status to publish December 14, 2023
