MANAGEMENT

Detailed explanation-1: -Sick leave is the leave that an employee can avail in case of sickness of self or relative (as specified under law). Sick leave provides pay to employees when they are out of work due to illness.

Detailed explanation-2: -Hence, employees who get paid wages do not have a fixed amount of a compensation and are typically paid according to the number of hours worked. A wage paid to an employee is therefore an example of a variable cost.

Detailed explanation-3: -The term “employee costs” refers to the expenditure incurred by an entity towards the services performed by the employees of such an entity. In normal parlance employee costs include wages/ salaries, allowances and bonuses, paid by an employer in cash or in kind to employee in return for the work done.

Detailed explanation-4: -Employee cost includes the following: (i) Wages and salary; (ii) Allowances and incentives; (iii) Payment for overtimes; (iv) Employer’s contribution to Provident fund and other welfare funds; (v) Other benefits (leave with pay, free or subsidised food, leave travel concession etc.)