Income Related to Employment for Pay

Income related to employment for pay includes: total cash remuneration; the value of remuneration in kind and services; profit-related pay; and employment-related social security benefits received either directly from the employer, from social security or compulsory insurance schemes or the State.

Net income related to employment for pay may be derived by deducting employees' direct taxes, union dues and other obligations. Whenever possible, the different types of deductions should be identified and recorded separately.

Income related to employment for pay excludes income derived from other forms of activity and other sources, such as income related to employment for profit, property income in the form of interest, dividends, income attributed to private insurance policyholders, rents and other forms of property income, as well as annuities, remittances, gifts, etc.

When the objective is to measure the income-generating capacity of a job, all the components of income related to employment for pay provided by the employer should be included. When the objective is to analyse the individual's employment-related well-being, the additional employment-related benefits provided by social security or compulsory insurance schemes or by the State should also be included.

Resolution III: Resolution to amend Resolution 16th ICLS concerning the measurement of employment-related income