Question

From the data given below, estimate the compensation of employees:

	(₹ in thousand)
(i) Wages and salaries received by the staff in cash	528
(ii) Value of free housing facilities	162
(iii) Subsidy on lunch/dinner to the staff	32
(iv) Employer’s contribution to social security	28
(v) Compensation received by an injured worker from the insurance company	10

Answer 1

To estimate the Compensation of Employees, we include:

Included items (₹ in thousand):

Wages and salaries in cash = ₹ 528

Free housing facilities = ₹ 162

Subsidy on lunch/dinner = ₹ 32

Employer’s contribution to social security = ₹ 28

Excluded item (₹ in thousand):

Compensation from insurance company (₹ 10) → Not paid by employer → Excluded

= 528 + 162 + 32 + 28

= ₹ 750 thousand