Payment in kind
Also called: wages in kind · Topic: Employment, Unemployment and Informalisation · NCERT: Class 6, Ch 13 "The Value of Work"
Meaning
Payment in kind means being paid for work in goods or services instead of cash. It is common in rural India, where labourers may get grain, fruit or a meal as their pay. Such payment still counts as income. Unpaid work at home, however, is not payment in kind, because nothing is given in return.
Example
A farm labourer who helps pick mangoes is paid in mangoes worth the same as a day's cash wage. That is payment in kind.
Don't confuse with
- Unpaid work: work done with no payment at all, like cooking at home. Payment in kind is still a payment. It is simply not in money.