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Compensation for the labor (services) of the employee or all expenses paid in connection with labor. It is one of the expense classifications in accounting, also called labor expenses (勞務費), and is contrasted with material expenses (物件費). Labor costs consist of direct labor costs and indirect labor costs. The former refers to the salary amount paid directly to individual employees, including wages, salaries, allowances, bonuses, severance pay, etc. The latter refers to costs borne by the company for the purpose of managing employees and providing welfare benefits, such as the company's share of social insurance premiums (industrial accident insurance premiums, health insurance premiums, etc.), costs for welfare facilities, welfare expenses, employee recruitment and training expenses, etc.