Is Contribution to provident fund by employer included/excluded in National Income?
Is Contribution to provident fund by employer included/excluded in National Income?
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Yes,
It will be included in the national income as it is a part of the compensation to employees.
Compensation of employees comprises of two components.
Compensation of Employees = Salary & Wages + Employer’s Contribution to Social Security Schemes
Employer’s Contribution to Social Security Schemes includes
- Employers deposit in provident fund
- Employers deposit in insurance schemes
Anurag Pathak Changed status to publish
