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.

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