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

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21	21	~1. Each country should aim at supplementing its programmes of statistics on employment, labour underutilization and wages with statistics that provide insight into the income related to employment, for the purpose of (a) analysing the income-generating capacity of different economic activities and (b) analysing the economic well-being of persons on the basis of the employment opportunities available to them.
22	22
23		-2. A programme of statistics on employment-related income should provide for the needs of various users. It should provide information required in economic analysis where the focus is on the identification and creation of productive economic activities, and should contribute to the design, implementation and assessment of employment promotion policies which aim at creating and developing employment that provides adequate income. Statistics of employment-related income should contribute to the development of the analysis of the informal sector for employment and income generation and the measurement of underemployment. The programme of statistics should also be useful for the analysis of the labour force situation in relation to the increased flexibility of the labour market and the structural changes resulting from this flexibility, in particular through the provision of data on the relationship between employment-related income and atypical or non-standard forms of employment. It should provide data on the changes in employment patterns and remuneration practices which have taken place in countries at different stages of development. Statistics of employment-related income may be used for planning, implementing and evaluating social and economic policies, for assessing the impact of specific policies such as assistance to agricultural workers and access of particular workers such as women and rural-urban migrants to the labour market. Statistics on the level of income from employment for pay and for profit should be used as an input in the assessment of the consumption capacity of workers and their level of employment-related welfare. Data on the structure and distribution of employment-related income may also be used in connection with the adjustment of income taxes and social security contributions and the redistribution of income and social security benefits. They should contribute to the compilation of labour and national accounts.
	23	+2.A programme of statistics on employment-related income should provide for the needs of various users. It should provide information required in economic analysis where the focus is on the identification and creation of productive economic activities, and should contribute to the design, implementation and assessment of employment promotion policies which aim at creating and developing employment that provides adequate income. Statistics of employment-related income should contribute to the development of the analysis of the informal sector for employment and income generation and the measurement of underemployment. The programme of statistics should also be useful for the analysis of the labour force situation in relation to the increased flexibility of the labour market and the structural changes resulting from this flexibility, in particular through the provision of data on the relationship between employment-related income and atypical or non-standard forms of employment. It should provide data on the changes in employment patterns and remuneration practices which have taken place in countries at different stages of development. Statistics of employment-related income may be used for planning, implementing and evaluating social and economic policies, for assessing the impact of specific policies such as assistance to agricultural workers and access of particular workers such as women and rural-urban migrants to the labour market. Statistics on the level of income from employment for pay and for profit should be used as an input in the assessment of the consumption capacity of workers and their level of employment-related welfare. Data on the structure and distribution of employment-related income may also be used in connection with the adjustment of income taxes and social security contributions and the redistribution of income and social security benefits. They should contribute to the compilation of labour and national accounts.
24	24
25		-3. In order to fulfil the above objectives, comprehensive, detailed and reliable statistics should, as far as possible, be compiled on (i) the characteristics of jobs for pay and for profit, (ii) the components and amounts of income generated by these jobs, (iii) where relevant, the corresponding volume of labour input and (iv) the socio-economic characteristics of persons holding jobs for pay or profit.
	25	+In order to fulfil the above objectives, comprehensive, detailed and reliable statistics should, as far as possible, be compiled on (i) the characteristics of jobs for pay and for profit, (ii) the components and amounts of income generated by these jobs, (iii) where relevant, the corresponding volume of labour input and (iv) the socio-economic characteristics of persons holding jobs for pay or profit.
26	26
27		-4. In order to enhance their comparability and usefulness, statistics of employment-related income should, as far as possible, be made compatible with other related economic and social statistics and with national accounts as regards the definitions, classifications and reference periods used, where relevant, by regrouping the components of income related to employment for pay and for profit.
	27	+In order to enhance their comparability and usefulness, statistics of employment-related income should, as far as possible, be made compatible with other related economic and social statistics and with national accounts as regards the definitions, classifications and reference periods used, where relevant, by regrouping the components of income related to employment for pay and for profit.
28	28
29	29	= Concepts and definitions =
30	30
31	31	== Employment-related income ==
32	32
33		-5. Employment-related income consists of the payments, in cash, in kind or in services, which are received by individuals, for themselves or in respect of their family members, as a result of their current or former involvement in jobs for pay or for profit. This means that besides income received by persons for working in current jobs, employment-related income includes payments received for having worked previously, in other jobs or in relation to such work. Such payments could be, for example, salaries/wages received with delay after leaving a job, or retirement pensions. It also means that during a specific reference period, a person may receive employment-related income without having any job (i.e. while being currently unemployed or out of labour force). Employment-related income excludes income derived from other sources such as property, social assistance, transfers, etc., not related to employment.
	33	+1. Employment-related income consists of the payments, in cash, in kind or in services, which are received by individuals, for themselves or in respect of their family members, as a result of their current or former involvement in jobs for pay or for profit. This means that besides income received by persons for working in current jobs, employment-related income includes payments received for having worked previously, in other jobs or in relation to such work. Such payments could be, for example, salaries/wages received with delay after leaving a job, or retirement pensions. It also means that during a specific reference period, a person may receive employment-related income without having any job (i.e. while being currently unemployed or out of labour force). Employment-related income excludes income derived from other sources such as property, social assistance, transfers, etc., not related to employment.
	34	+1. For definitional and measurement purposes, the concept of income related to employment for pay should be distinguished from the concept of income related to employment for profit.
	35	+1. The statistics of employment-related income should cover all persons employed, as defined in the resolution concerning statistics of work, employment and labour underutilization, adopted by the 19th ICLS (2013). Where feasible, they should also cover working children{{footnote}}This inclusion should not be interpreted as condoning child labour.{{/footnote}} and youths below the specified minimum age limit adopted for measuring the labour force.
	36	+1. The measurement of employment-related income should relate, separately, to "workers in employment for pay" and to "workers in employment for profit", as further defined in the most recent version of the International Classification of Status in Employment (ICSE).
	37	+1. For further analysis, and especially for analysing economic well-being related to employment, statistics of employment-related income should cover those unemployed and persons outside the labour force who receive an income as a result of their former employment.
34	34
35		-6. For definitional and measurement purposes, the concept of income related to employment for pay should be distinguished from the concept of income related to employment for profit.
	39	+==== Income related to employment for pay ====
36	36
37		-7. The statistics of employment-related income should cover all persons employed, as defined in the resolution concerning statistics of work, employment and labour underutilization, adopted by the 19th ICLS (2013). Where feasible, they should also cover working children{{footnote}}This inclusion should not be interpreted as condoning child labour.{{/footnote}} and youths below the specified minimum age limit adopted for measuring the labour force.
	41	+1. Income related to employment for pay consists of all payments and benefits in cash, kind or services, which are received, over a given reference period, by individuals for themselves or in respect of their family members, by virtue of their involvement in a current or former job for pay. Such payments and benefits may be provided by the employer, social security or compulsory insurance schemes or the State.
	42	+1. Income related to employment for pay covers the income of the following categories of persons as defined by ICSE:
	43	+1*. Owner-operators of corporations:
	44	+1**. Employers in corporations
	45	+1**. Owner-operators of corporations without employees ● Employees: o Permanent employees o Fixed-term employees o Short-term and casual employees o Paid apprentices, trainees and interns
	46	+1. 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.
38	38
39		-8. The measurement of employment-related income should relate, separately, to "workers in employment for pay" and to "workers in employment for profit", as further defined in the most recent version of the International Classification of Status in Employment (ICSE).
	48	+(a) Total cash remuneration, excluding employee contributions to compulsory employmentrelated social security and retirement income provision schemes (in order to avoid subsequent double counting of income), covers:
40	40
41		-9. For further analysis, and especially for analysing economic well-being related to employment, statistics of employment-related income should cover those unemployed and persons outside the labour force who receive an income as a result of their former employment.
	50	+1.
	51	+11.
	52	+111. direct wages and salaries in cash for time worked and work done, including all incentive, shift and premium pay (e.g. for responsibility, unsanitary conditions, danger, work at night, weekends and during other unsocial hours); cost-of-living, housing, transport, language and similar allowances; hardship, mobility, non-resident, expatriation, repatriation, post-adjustment and similar allowances; contractual and nonobligatory regular bonuses and premiums; tips and commissions (with and without a retainer); payments for odd jobs and duties and casual work. They also include fees and salaries of managerial staff; remuneration of trainees and apprentices; and other components of direct wages and salaries;
	53	+111. remuneration for time not worked comprises: annual vacation and other paid leave; public holidays and other recognized holidays; temporary halt or slow-down of production, short-time working; other time off granted with pay (e.g. for personal and family reasons, civic duties, union responsibilities, training and education); paid sick leave (where not regarded as social security benefit); severance and termination pay (where not regarded as social security benefit);
	54	+111. cash bonuses and gratuities include: all bonuses and gratuities, whether contractual or noncompulsory bonuses and premiums, year-end and seasonal bonuses (13th, 14th or 15th month's salary, additional vacation pay, etc.); exceptional payments for innovative ideas or work methods; and similar ad hoc payments.
	55	+11. Remuneration in kind and services includes: traditional payments such as food, drink, fuel, clothing, footwear, etc.; the imputed rental value of free or subsidized housing; petrol and/or mileage allowance or the imputed value of free or subsidized similar benefits; the imputed value of business vehicles for employees' private use, telephone, electricity and similar utilities; free or subsidized transport to and from work and free car parking; the value covered by the employer of: union, association and club fees, nurseries, crèches, etc. for employees' children, low- or zero-interest loans, subsidized mortgages, etc., the value of output from employer's process of production{{footnote}}In so far as the provision of this type of benefit is in line with the recommendations contained in the Protection of Wages Convention, 1949 (No. 95).{{/footnote}}; ' as well as the value of other payments in kind, including flexible benefits and other compensation packages for employees.
	56	+11. Profit-related pay comprises: traditional profit-sharing bonuses; current receipts from profit-related schemes, participation, savings-related share option schemes and similar schemes; the initial market value of shares distributed to employees and owner-operators of corporations; other profit-related receipts.
	57	+11. Employment-related social security benefits include:
	58	+111. current receipts from the employer: e.g. family, dependants' and similar allowances; educational allowances; payments in respect of absence from work due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of earnings); payments in respect of temporary or partial lay-off or unemployment (which compensate, in part or in full, for loss of earnings); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security payments received from the employer;
	59	+111. current employment-related social security benefits received from social security or compulsory insurance schemes or the State: e.g. family, dependants', educational and similar allowances; payments in respect of absence from work due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of earnings); payments in respect of temporary or partial lay-off or unemployment (which compensate, in part or in full, for loss of earnings); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security and assimilated payments for which the employment status is a condition of receipt;
	60	+111. current social security benefits received as a result of former employment: e.g. unemployment compensation; severance, termination and redundancy pay; occupational and retirement pensions and assimilated benefits.
	61	+1. 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.
	62	+1. 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. It also excludes:
	63	+1*. family allowances and other social security benefits or assistance (e.g. food stamps, government or community housing, free health-care assistance, etc.), when paid by social security schemes or the State without regard to the employment status (e.g. under universal schemes with or without means tests);
	64	+1*. indemnities or allowances in cash and in kind paid by the employer purely to cover the employees' cost of work-related expenditure (e.g. tools, equipment, clothing or footwear
42	42
43		-== Income related to employment for pay ==
44	44
45		-10. Income related to employment for pay consists of all payments and benefits in cash, kind or services, which are received, over a given reference period, by individuals for themselves or in respect of their family members, by virtue of their involvement in a current or former job for pay. Such payments and benefits may be provided by the employer, social security or compulsory insurance schemes or the State.
46	46
47		-~11. Income related to employment for pay covers the income of the following categories of persons as defined by ICSE:
	68	+used exclusively or mainly at work, special housing and meals necessitated by exceptional working conditions, reimbursement of business travel and accommodation expenses, medical examinations or health checks required because of the nature of the work, etc.). However, when indemnities take the form of cash payments over and above the reimbursement of expenses incurred by employees, such payments should be considered as income related to employment for pay; ● employers' contributions to social security funds, insurance or other institutional units responsible for social insurance schemes.
48	48
49		-* Owner-operators of corporations:
50		-** Employers in corporations
51		-** Owner-operators of corporations without employees ● Employees: o Permanent employees o Fixed-term employees o Short-term and casual employees o Paid apprentices, trainees and interns
	70	+1. 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.
52	52
53		-12. 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.
54	54
55		-* (a) Total cash remuneration, excluding employee contributions to compulsory employmentrelated social security and retirement income provision schemes (in order to avoid subsequent double counting of income), covers:
56		-** (i ) direct wages and salaries in cash for time worked and work done, including all incentive, shift and premium pay (e.g. for responsibility, unsanitary conditions, danger, work at night, weekends and during other unsocial hours); cost-of-living, housing, transport, language and similar allowances; hardship, mobility, non-resident, expatriation, repatriation, post-adjustment and similar allowances; contractual and nonobligatory regular bonuses and premiums; tips and commissions (with and without a retainer); payments for odd jobs and duties and casual work. They also include fees and salaries of managerial staff; remuneration of trainees and apprentices; and other components of direct wages and salaries;
57		-** (ii) remuneration for time not worked comprises: annual vacation and other paid leave; public holidays and other recognized holidays; temporary halt or slow-down of production, short-time working; other time off granted with pay (e.g. for personal and family reasons, civic duties, union responsibilities, training and education); paid sick leave (where not regarded as social security benefit); severance and termination pay (where not regarded as social security benefit);
58		-** (ii) cash bonuses and gratuities include: all bonuses and gratuities, whether contractual or noncompulsory bonuses and premiums, year-end and seasonal bonuses (13th, 14th or 15th month's salary, additional vacation pay, etc.); exceptional payments for innovative ideas or work methods; and similar ad hoc payments.
59		-* (b) Remuneration in kind and services includes: traditional payments such as food, drink, fuel, clothing, footwear, etc.; the imputed rental value of free or subsidized housing; petrol and/or mileage allowance or the imputed value of free or subsidized similar benefits; the imputed value of business vehicles for employees' private use, telephone, electricity and similar utilities; free or subsidized transport to and from work and free car parking; the value covered by the employer of: union, association and club fees, nurseries, crèches, etc. for employees' children, low- or zero-interest loans, subsidized mortgages, etc., the value of output from employer's process of production{{footnote}}In so far as the provision of this type of benefit is in line with the recommendations contained in the Protection of Wages Convention, 1949 (No. 95).{{/footnote}}; ' as well as the value of other payments in kind, including flexible benefits and other compensation packages for employees.
60		-* (c) Profit-related pay comprises: traditional profit-sharing bonuses; current receipts from profit-related schemes, participation, savings-related share option schemes and similar schemes; the initial market value of shares distributed to employees and owner-operators of corporations; other profit-related receipts.
61		-* (d) Employment-related social security benefits include:
62		-** (i ) current receipts from the employer: e.g. family, dependants' and similar allowances; educational allowances; payments in respect of absence from work due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of earnings); payments in respect of temporary or partial lay-off or unemployment (which compensate, in part or in full, for loss of earnings); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security payments received from the employer;
63		-** (ii) current employment-related social security benefits received from social security or compulsory insurance schemes or the State: e.g. family, dependants', educational and similar allowances; payments in respect of absence from work due to sickness, maternity, occupational injury or disease, etc. (which compensate, in part or in full, for loss of earnings); payments in respect of temporary or partial lay-off or unemployment (which compensate, in part or in full, for loss of earnings); as well as compensation for medical expenditure, provision of free health care (homes, clinics, health services, etc.) and other social security and assimilated payments for which the employment status is a condition of receipt;
64		-** (iii) current social security benefits received as a result of former employment: e.g. unemployment compensation; severance, termination and redundancy pay; occupational and retirement pensions and assimilated benefits.
65	65
66		-13. 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.
	74	+==== Income related to employment for profit ====
67	67
68		-14. 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. It also excludes:
	76	+1. Income related to employment for profit is defined as the income which is received, over a given reference period, by individuals, for themselves or in respect of their family members who help in family businesses as contributing family workers, as a result of their current or former involvement in employment for profit.
	77	+1. For purposes of measurement of income related to employment for profit, those employed for profit are primarily the sole owners, or joint owners, of the unincorporated household enterprises or quasi-corporations in which they work, according to the definition contained in the System of National Accounts. They do not include the owner-operators of corporations, who are considered workers in employment for pay according to ICSE-.
	78	+1. Gross income related to employment for profit consists of:
69	69
70		-* family allowances and other social security benefits or assistance (e.g. food stamps, government or community housing, free health-care assistance, etc.), when paid by social security schemes or the State without regard to the employment status (e.g. under universal schemes with or without means tests);
71		-* indemnities or allowances in cash and in kind paid by the employer purely to cover the employees' cost of work-related expenditure (e.g. tools, equipment, clothing or footwear used exclusively or mainly at work, special housing and meals necessitated by exceptional working conditions, reimbursement of business travel and accommodation expenses, medical examinations or health checks required because of the nature of the work, etc.). However, when indemnities take the form of cash payments over and above the reimbursement of expenses incurred by employees, such payments should be considered as income related to employment for pay; ● employers' contributions to social security funds, insurance or other institutional units responsible for social insurance schemes.
	80	+(a) the profit (or the share of profit) which is generated by the activity, received by the following categories of employed persons as defined by the ICSE:
72	72
73		-15. 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.
	82	+*
	83	+**
	84	+***
	85	+**** Employers in household market enterprises
	86	+**** Own-account workers in household market enterprises without employees
	87	+**** Dependent contractors
	88	+**** Contributing family workers and
74	74
75		-== Income related to employment for profit ==
	90	+(b) the amount of employment-related social security benefits received by persons in employment for profit through schemes recognizing the status in employment as a specific condition for membership.
76	76
77		-16. Income related to employment for profit is defined as the income which is received, over a given reference period, by individuals, for themselves or in respect of their family members who help in family businesses as contributing family workers, as a result of their current or former involvement in employment for profit.
	92	+1. The gross profit (or the share of profit) of unincorporated household enterprises is equivalent to gross mixed income as defined in the System of National Accounts. It corresponds to the value of gross output reduced by operating expenses, where:
	93	+1*.
	94	+1**. the value of gross output may be defined as the value of all goods and services produced for the market as well as for own final use (market output corresponds to the value of goods and services sold, bartered or provided free of charge or at reduced prices as payments in kind to hired labour; production for own final use includes the value of goods and services consumed by the household or retained for use in future production); and
	95	+1**. operating expenses comprise three types of business expenditure: (a) intermediate consumption (excluding, as far as possible, expenditure for purely personal or household purposes), (b) compensation of employees payable, and (c) taxes on production payable, minus subsidies received, if any, as defined in the System of National Accounts.
	96	+1. In principle, profit (or mixed income) should be recorded net of consumption of fixed capital,
78	78
79		-17. For purposes of measurement of income related to employment for profit, those employed for profit are primarily the sole owners, or joint owners, of the unincorporated household enterprises or quasi-corporations in which they work, according to the definition contained in the System of National Accounts. They do not include the owner-operators of corporations, who are considered workers in employment for pay according to ICSE-.
	98	+i.e. after deduction of the value of consumption of productive assets (i.e. structures, machinery and equipment, cultivated assets used to produce other products, etc.).
80	80
81		-18. Gross income related to employment for profit consists of:
	100	+1. Any contributions of those employed for profit to compulsory employment-related social security or retirement income provision schemes should be deducted from gross profit or mixed income, in order to avoid subsequent double counting of income.
	101	+1. Where those employed for profit run their enterprises independently from other partners and contributing family workers, with or without employees, the profit corresponds to both the income generated by the enterprise and the entrepreneur's individual income related to employment for profit. Where those employed for profit run their enterprises in partnership, the profit represents a joint income and income related to employment for profit should correspond to the share of income received by each partner.
	102	+1. Employment-related social security benefits received by persons employed for profit comprise those benefits which are paid through schemes organized by social security, insurance institutions or the State, which recognize the status in employment as a specific condition for membership. They may include all or some of the following benefits:
	103	+1*.
	104	+1**. current employment-related social security benefits received from social security or compulsory insurance schemes or the State; and
	105	+1**. current social security benefits received by individuals as a result of their former employment for profit.
	106	+1. Net income related to employment for profit may be derived by deducting from gross income related to employment for profit, personal direct taxes and other employment-related obligations.
	107	+1. Income related to employment for profit excludes income derived from employment for pay, and other sources not related to employment, such as 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. It also excludes family allowances and other social security benefits or assistance (e.g. food stamps, government or community housing, free health-care assistance, etc.) paid by social security schemes or the State without regard to the employment status (e.g. under universal schemes with or without means tests).
	108	+1. All the components of income related to employment for profit noted in paragraph 18 are relevant for the analysis of the employment-related well-being of those employed for profit. Where the objective is to measure the income-generating capacity of a job for profit, employment-related social security benefits should be excluded.
82	82
83		-* (a) the profit (or the share of profit) which is generated by the activity, received by the following categories of employed persons as defined by the ICSE:
84		-** Employers in household market enterprises
85		-** Own-account workers in household market enterprises without employees
86		-** Dependent contractors
87		-** Contributing family workers and
88		-* (b) the amount of employment-related social security benefits received by persons in employment for profit through schemes recognizing the status in employment as a specific condition for membership.
	110	+=== Measurement issues ===
89	89
90		-19. The gross profit (or the share of profit) of unincorporated household enterprises is equivalent to gross mixed income as defined in the System of National Accounts. It corresponds to the value of gross output reduced by operating expenses, where:
	112	+==== Evaluation of benefits in kind received by persons in employment for pay ====
91	91
92		-* the value of gross output may be defined as the value of all goods and services produced for the market as well as for own final use (market output corresponds to the value of goods and services sold, bartered or provided free of charge or at reduced prices as payments in kind to hired labour; production for own final use includes the value of goods and services consumed by the household or retained for use in future production); and
93		-* operating expenses comprise three types of business expenditure: (a) intermediate consumption (excluding, as far as possible, expenditure for purely personal or household purposes), (b) compensation of employees payable, and (c) taxes on production payable, minus subsidies received, if any, as defined in the System of National Accounts.
94		-
95		-20. In principle, profit (or mixed income) should be recorded net of consumption of fixed capital, i.e. after deduction of the value of consumption of productive assets (i.e. structures, machinery and equipment, cultivated assets used to produce other products, etc.).
96		-
97		-21. Any contributions of those employed for profit to compulsory employment-related social security or retirement income provision schemes should be deducted from gross profit or mixed income, in order to avoid subsequent double counting of income.
98		-
99		-22. Where those employed for profit run their enterprises independently from other partners and contributing family workers, with or without employees, the profit corresponds to both the income generated by the enterprise and the entrepreneur's individual income related to employment for profit. Where those employed for profit run their enterprises in partnership, the profit represents a joint income and income related to employment for profit should correspond to the share of income received by each partner.
100		-
101		-23. Employment-related social security benefits received by persons employed for profit comprise those benefits which are paid through schemes organized by social security, insurance institutions or the State, which recognize the status in employment as a specific condition for membership. They may include all or some of the following benefits:
102		-
103		-* current employment-related social security benefits received from social security or compulsory insurance schemes or the State; and
104		-* current social security benefits received by individuals as a result of their former employment for profit.
105		-
106		-24. Net income related to employment for profit may be derived by deducting from gross income related to employment for profit, personal direct taxes and other employment-related obligations.
107		-
108		-25. Income related to employment for profit excludes income derived from employment for pay, and other sources not related to employment, such as 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. It also excludes family allowances and other social security benefits or assistance (e.g. food stamps, government or community housing, free health-care assistance, etc.) paid by social security schemes or the State without regard to the employment status (e.g. under universal schemes with or without means tests).
109		-
110		-26. All the components of income related to employment for profit noted in paragraph 18 are relevant for the analysis of the employment-related well-being of those employed for profit. Where the objective is to measure the income-generating capacity of a job for profit, employment-related social security benefits should be excluded.
111		-
112		-= Measurement issues =
113		-
114		-== Evaluation of benefits in kind received by persons in employment for pay ==
115		-
116	116	27. For the purposes of the measurement of income related to employment for pay, benefits in kind should be valued in terms of the income accruing to the persons in employment for pay. Countries may evaluate these benefits on the basis of retail market prices. When provided free, the value of income in kind is equal to the full value of the goods and services in question. When provided at reduced prices, the value of income in kind is equal to the difference between the full value and the amount paid by the recipient.
117	117
118		-== Treatment of occupational expenditure of persons in employment for pay ==
	116	+==== Treatment of occupational expenditure of persons in employment for pay ====
119	119
120	120	28. Despite the fact that employees and owner-operators of corporations may incur specific expenses associated with working, which counterbalance part of the wages and benefits received, income related to employment for pay should be recorded gross of workers in employment for pay’s occupational expenditure.
121	121
122		-== Operational approach to the measurement of income related to employment for profit ==
	120	+==== Operational approach to the measurement of income related to employment for profit ====
123	123
124		-29. In view of the heterogeneity of those in employment for profit and the complexity of measurement of net income of unincorporated enterprises, the measurement of income related to employment for profit should be phased into national programmes of statistics over an extended period of time. In the initial phase, countries should endeavour to identify and measure the income received by two groups of workers in employment for profit:
	122	+1. In view of the heterogeneity of those in employment for profit and the complexity of measurement of net income of unincorporated enterprises, the measurement of income related to employment for profit should be phased into national programmes of statistics over an extended period of time. In the initial phase, countries should endeavour to identify and measure the income received by two groups of workers in employment for profit:
	123	+11. The first group consists of persons employed for profit operating their enterprises with little or negligible capital input, who produce goods and services in a similar way to employees (such as those engaged in crafts or services, whether in the formal or the informal sector). The income they receive is mostly a return to their labour input and the gross mixed income of the enterprise is a close estimate of net mixed income.
	124	+11. The second group consists of persons employed for profit whose activities involve an identifiable amount of capital for the production and generation of income (such as professional workers in the formal sector or workshops in the informal sector). In this case, efforts should be made to quantify the amount of capital used to generate the income and to derive net mixed income. For this purpose, data on the consumption of productive assets (i.e. structures, machinery or equipment, cultivated assets such as trees or animals used to produce other products such as fruit or dairy products, etc.) should, in principle, be collected. Consumption of productive assets may be valued through an estimate of depreciation, according to the business accounting rules in force in each country, or according to the methods contained in the System of National Accounts. Due account should also be taken of the source of data and data collection methods. Where it is not possible to obtain reliable data on consumption of fixed capital from persons in employment for profit, net income related to employment for profit may have to be derived by means of analytical methods.
	125	+1. When measuring income related to employment for profit in the informal sector, special attention needs to be paid to the particular circumstances of collecting income data from enterprises in this sector, due account being taken of the guidelines contained in the resolution concerning statistics on the informal economy adopted by the 21st ICLS.
125	125
126		-* (a) The first group consists of persons employed for profit operating their enterprises with little or negligible capital input, who produce goods and services in a similar way to employees (such as those engaged in crafts or services, whether in the formal or the informal sector). The income they receive is mostly a return to their labour input and the gross mixed income of the enterprise is a close estimate of net mixed income.
127		-* (b) The second group consists of persons employed for profit whose activities involve an identifiable amount of capital for the production and generation of income (such as professional workers in the formal sector or workshops in the informal sector). In this case, efforts should be made to quantify the amount of capital used to generate the income and to derive net mixed income. For this purpose, data on the consumption of productive assets (i.e. structures, machinery or equipment, cultivated assets such as trees or animals used to produce other products such as fruit or dairy products, etc.) should, in principle, be collected. Consumption of productive assets may be valued through an estimate of depreciation, according to the business accounting rules in force in each country, or according to the methods contained in the System of National Accounts. Due account should also be taken of the source of data and data collection methods. Where it is not possible to obtain reliable data on consumption of fixed capital from persons in employment for profit, net income related to employment for profit may have to be derived by means of analytical methods.
	127	+==== Choice of method for recording income related to employment for profit ====
128	128
129		-30. When measuring income related to employment for profit in the informal sector, special attention needs to be paid to the particular circumstances of collecting income data from enterprises in this sector, due account being taken of the guidelines contained in the resolution concerning statistics on the informal economy adopted by the 21st ICLS.
	129	+1. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
	130	+11. Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
	131	+11. The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
	132	+1. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
130	130
131		-== Choice of method for recording income related to employment for profit ==
	134	+==== Valuation of own production consumed by workers in employment for profit ====
132	132
133		-31. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
134		-
135		-* (i ) Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
136		-* (ii) The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
137		-
138		-32. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
139		-
140		-== Valuation of own production consumed by workers in employment for profit ==
141		-
142	142	33. The part of goods and services produced and consumed by workers in employment for profit and their family members should be valued in terms of the basic prices of similar products sold on the market or of their cost of production if no suitable basic prices are available, as defined in the SNA. In the absence of these prices, retail market prices could be used. Such consumption of own production is similar to payments in kind received by workers in employment for pay.
143	143
144		-== Treatment of losses of workers in employment for profit ==
	138	+==== Treatment of losses of workers in employment for profit ====
145	145
146	146	34. Jobs for profit may, over a given reference period, produce a financial loss instead of income or profit. Losses should be reflected in the measurement of income related to employment for profit and evaluated as negative income.
147	147
148		-= Statistical units =
	142	+=== Statistical units ===
149	149
150	150	1. Two basic observation units are relevant to the measurement of income related to employment for pay or profit, depending on the objective pursued: the job and the individual person.
151	151	1. For the measurement of the income-generating capacity of different economic activities, the //job, //as defined in ICSE, is the basic entity on which information is to be collected and analysed. Jobs can be for pay or for profit, which can be characterized by industry, occupation and employment status, coded at the most detailed level of national or international classifications.
152	152	1. When the objective is the analysis of the employment-related well-being of the population concerned, the desirable unit is the //individual person. //The individual is also relevant when analysing the relationship between employment-related income and educational achievements, seniority in employment, work duration, etc. An individual may be engaged in a single job, have multiple jobs in employment for pay or for profit, or own and operate more than one unincorporated enterprise, simultaneously or consecutively within a given reference period. From the individual's standpoint, employment-related income corresponds to the sum of all incomes generated by all jobs as well as income from former employment.
153	153
154		-= Reference period =
	148	+=== Reference period ===
155	155
156	156	1. In measuring income related to employment for pay and for profit, account should be taken of the seasonal variations which affect the receipt of income, the fluctuations in work intensity of individuals, and the possible combination of multiple activities and periods of activity and inactivity of the population concerned. For this purpose, income related to employment for pay and for profit should be measured over a long reference period, such as a full year.
157	157	1. For data collection purposes, shorter reference periods, such as a month or a quarter, may be used. Different activities and jobs may require different reference periods, such as a month