Giving reasons, explain the treatment assigned to
the following while estimating National Income:
(i) Social security contributions by employees.
(ii) Pension paid after retirement.
(i) Social security contributions by employees are not
separately included in the estimation of National Income as these are paid out of compensation of employees.
(ii) Pension paid after retirement is included in the estimation of National Income because this is a kind of deferred wage payment and is therefore, treated as a component of compensation of employees.