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


What is Retrenchment? Retrenchment is a process of reducing employees by terminating them from the workforce. Organizations often have to take this decision due to

Employee Relations

What is Employee Relations?   ‘Employee Relations’ is the term used to define the efforts taken by an employer in maintaining a healthy relationship with

Career Break

What is Career Break?   A ‘Career Break’ is a break from one’s career for either professional or personal reasons. It has to be agreed

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’