Which of the following is true about short-term employee benefits?

Short-term employee benefits are defined as those employee benefits that are expected to be settled within 12 months after the end of the reporting period in which the services are rendered. This encompasses various forms of compensation, such as wages, salaries, and other benefits that are accrued and typically paid out in the short run.

The key aspect of short-term employee benefits is the time frame in which they are due, specifically, they fall due within 12 months of service, which aligns perfectly with the correct answer. This definition is crucial as it helps companies determine how to account for these benefits and report them in their financial statements.

Other options relate to aspects that do not fall within the scope of short-term employee benefits. For instance, benefits that are payable after 12 months are classified as long-term benefits, and thus do not fit the criteria for short-term employee benefits. Long-term pension contributions concern future liabilities and engagement beyond the 12-month mark, and therefore are not included in the short-term benefits category. Similarly, while unpaid vacations may be a concern, they do not encapsulate the entire range of short-term benefits, as these benefits can also include regular salaries and overtime pay made within the specified period.