Expense 117
Wages and salaries in cash [GFS] (2111)
6.13 Wages and salaries in cash^8 are the amounts
payable in cash, or any other fi nancial instruments
used as means of payments, to employees in return for
work performed. As indicated in Table 6.2, wages and
salaries in cash [GFS] (2111) exclude amounts con-
nected with own-account capital formation. Included
are the following kinds of remuneration:
- Basic wages or salaries payable at regular weekly,
monthly, or other intervals, including payments
by results and piecework payments; enhanced
(^8) Th e use of the term “cash” should not be viewed as denot-
ing the cash basis of recording, but rather denotes monetary
remuneration.
payments or special allowances for working
overtime, at nights, on weekends, or other ir-
regular hours; allowances for working away
from home or in disagreeable or hazardous cir-
cumstances; expatriation allowances for working
abroad, etc.
- Supplementary allowances payable regularly,
such as housing allowances or allowances to
cover the costs of travel to and from work, but
excluding social benefi ts payable by the employ-
ers (see paragraph 6.16) - Wages or salaries payable to employees away
from work for short periods—for example, on
vacation or as a result of a temporary halt to pro-
duction, except during absences due to sickness,
injury, etc. (see paragraph 6.16) - Annual supplementary pay, such as bonuses and
“13th month” pay - Ad hoc bonuses or other exceptional payments
linked to the overall performance of the enter-
prise made under incentive schemes - Commissions, gratuities, and tips received by
employees: these should be included in payments
for services rendered by the unit employing the
worker, even when they are payable directly to
the employee by a third party. Th ey are thus
regarded as being paid by the employer to the
employee.^9
6.14 In some instances, an employee benefi t, such
as a car or extra pension contributions, may not be
provided to the employee for free (i.e., not provided
without an opportunity cost to the employee). Th e
benefi t may be “purchased” from the employer by
forgoing some salary. Th e attraction of such schemes
oft en lies in the tax advantages that an employee may
enjoy by restructuring salary packages. In these cases,
the full salary should include the employee benefi ts
“purchased” and be recorded as payable in cash—the
cost of acquiring the benefi t is regarded as an expen-
diture of the employee.
6.15 Wages and salaries in cash do not include the
reimbursement by the government of costs incurred
(^9) Amounts directly paid to the employee should be rerouted to
be included in revenue of the employer related to the service
provided, and then expensed as wages and salaries.
Table 6.2 Detailed Classifi cation of Compensation
of Employees [GFS] (21)
21 Compensation of employees [GFS]^1
Compensation of employees [SNA]
Minus: Related to own-account capital
formation
211 Wages and salaries [GFS]
Wages and salaries [SNA]
Minus: Related to own-account capital
formation
2111 Wages and salaries in cash [GFS]
Wages and salaries in cash [SNA]
Minus: Related to own-account capital
formation
2112 Wages and salaries in kind [GFS]
Wages and salaries in kind [SNA]
Minus: Related to own-account capital
formation
212 Employers’ social contributions [GFS]
Employers’ social contributions [SNA]
Minus: Related to own-account capital
formation
2121 Actual employers’ social contributions [GFS]
Actual employers’ social contributions
[SNA]
Minus: Related to own-account capital
formation
2122 Imputed employers’ social contributions [GFS]
Imputed employers’ social contributions
[SNA]
Minus: Related to own-account capital
formation
(^1) Further breakdown/“of which” lines could allow for the identifi -
cation of the types of compensation of employees payable.