question_answer

Giving reasons and explain the treatment assigned to the following while estimating national income:

(i) Social security contributions by employees.

(ii) Pension paid after retirement.

Answer:

(i) Social security contributions by employees should be included in the estimation of national income as it is part of compensation of an employee.

(ii) Pension paid after retirement should be included in the estimation of national income. This is because it is a part of compensation of employees.