Wages and salaries are the remuneration paid or payable to employees for work performed on behalf of an employer or services provided.
Alternatively, all or a part may be paid in various other ways, such as payment in kind in the form of goods or services provided to the employee,[1] such as food and board.
For tax purposes, wages and salaries normally do not include other non-cash benefits received by an employee, such as flights, payment of school fees etc.
For administrative convenience, or due to a legal requirement or some other reason all or a part of such payments may actually be withheld by the employer and paid directly to tax authorities, etc., on behalf of the employee.
Wages and salaries in kind consist of remuneration in the form of goods or services that are not necessary for work and can be used by employees in their own time, and at their own discretion, for the satisfaction of their own needs or wants or those of other members of their households.