Total Compensation

What is Total Compensation ?

‘Total Compensation’ refers to the complete monetary benefits provided to an employee by the company. Generally speaking, it is considered to be a sum of the base pay of the employee and the additional incentives and bonuses provided.

The total compensation would also include the benefits which the employee doesn’t receive as money. Benefits such as gym memberships, medical insurance, vacation time, dental plans, tuition reimbursement, etc. are all included while calculating the total compensation.

In other cases, total compensation might even include the profit sharing distributions, child care assistance, house rent, retirement plans, etc. All of these should be taken into consideration and summed with the base pay while calculating the total compensation.

More HR Terms

Parent or Home Country

What is Parent or Home Country?   ‘Parent Country’ or ‘Home Country’ is the primary country of origin of a company. When a company establishes

Full-time Equivalent

What is Full-time Equivalent?   ‘Full-time Equivalent’ or ‘FTE’ refers to the multiplying factor which can be used to calculate the salary of a part-time

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