The main components of domestic factor income are:
- Compensation of employees: Wages and salaries (in cash and kind) and employers contributions to social security schemes.
- Operating surplus: Includes rent, interest, royalty, and profits earned by producers and capital owners.
- Mixed income of self-employed: Income that combines wages, rent, interest, and profits, typically earned by individuals running small businesses or farms who provide both labor and capital.
These components together make up the domestic factor income used in national income estimation.
