Glossary:Compensation of employees
From Statistics Explained
Compensation of employees refers to gross wages, salaries and other benefits earned by individuals in economies other than those in which they are resident, for work performed and paid for by residents of those economies. Compensation of employees includes salaries paid to seasonal and other short-term workers (less than one year), to the employees of embassies and of other territorial enclaves that are not considered part of the national economy and to cross-border workers (Balance of Payments Manual, 5th edition, 1993, p.70). The European Institutions (like the embassies) are considered as enclaves not belonging to the national economies where they are located, while their employees are considered to be resident in the country where they live. The salaries that the European Institutions pay to their employees are therefore recorded among the flows of compensation of employees.
- EU remittances back on the increase in 2010Statistics in focus 4/2012
- Balance of Payments Manual, 5th edition, IMF 1993
- Balance of Payments Manual, 6th edition, IMF 2008