Compensation of Employees

Compensation of Employees is the total amount an employee can expect to receive when working for an organization. It refers basically to the total gross (pre-tax) wages paid by employers to employees for work done in an accounting period, such as a quarter or a year. There are many different types of compensation packages that an employer will offer employees. It is measured by the value of the remuneration in cash or in kind which an employee becomes entitled to receive from an employer in respect of work done, during the relevant accounting period – whether paid in advance, simultaneously, or in arrears of the work itself.