The labor cost is the cost incurred by the employer for employing human resources.[1]​ The labor cost includes both the salary, as well as the payment to social security and private insurance, for the benefit of employees and occasionally the cost of possible compensation or compensation, the cost of staff training, transportation and staff allowances.

The costs that make up the labor cost can be divided into six groups;

1. • The direct Salary Cost (base salary, salary supplements, payments for overtime, extraordinary payments and late payments). Before taxes and contributions.

2. • Mandatory contributions to Social Security, by the employer.

3. • Voluntary contributions to insurance and pension systems, in accordance with collective agreements. It includes pension plans and funds, sickness, maternity, accident insurance, other insurance plans and other contributions.

4. • Direct social benefits, which are from the employer directly to the worker or his family in certain circumstances such as unemployment, retirement, death and survival, disability or disability, family assistance and medical assistance.

5. • The rest of the cost components which include the

• Compensation for dismissal or end of contract,

• Vocational training,

• Transportation,

• Canteens, Daycares, Sports and cultural activities

• Personnel selection.

6. • Subsidies or tax advantages, such as subsidies for Social Security contributions, subsidies for hiring, subsidies for vocational training and tax deductions, are subtracted from the other groups.

• - "Compensation of Employees in Balance of Payments Statistics" [1].

• - OECD sources and definitions for labor compensation [2].

• - Bert Theeuwes, Compensations & Benefits in Belgium [3].

• - Edgar Z. Palmer, The meaning and measurement of the national income, and of other social accounting aggregates.

• - Anwar Shaikh & Ahmet Ertugrul Tonak, Measuring the Wealth of Nations. CUP.

• - Zoltan Kenessey (Ed.), The Accounts of Nations, Amsterdam IOS, 1994.

• - Social Security.

• - Quote in contracting in Spain.

weekly payroll.