Calculate compensation of employees from the data given below :

Question

Accepted Answer

COE = Wages and Salaries in Cash + Wages in Kind + Employer's Contribution to Social Security

Given data (from table):
- Interest = 45
- Profits after tax = 20
- Consumption of fixed capital = 50
- GDP_MP = 200
- Rent = 25
- Corporate tax = 5
- GST = 10

Using Income Method:
NDP_FC = GDP_MP - Depreciation - NIT = 200 - 50 - 10 = 140
Operating Surplus = Rent + Interest + Profit = 25 + 45 + (20+5) = 95
NDP_FC = COE + OS + Mixed Income
140 = COE + 95 + 0
COE = Rs. 45 crore