Total compensation is the complete value of everything you earn from your employer, including your salary, benefits, bonuses, and other perks. Knowing how to calculate it helps you make informed career decisions, evaluate job offers, and understand your true earning power.
This is your annual salary or hourly wage multiplied by the number of hours you work per year.
Example: $70,000/year
Include any:
Example: $5,000 annual bonus
3. Factor In Employer-Paid Benefits
Include the employer’s share of:
Example: $4,000/year in employer-paid benefits
Add any:
Example: $3,500/year in employer pension contributions
Calculate the value of vacation, sick leave, and paid holidays.
Formula: (Base salary ÷ 260 workdays) × # of paid days off
Example: 20 paid days off = ~$5,385 value on $70,000 salary
Include:
Example: $1,000/year in wellness & tech stipends
Base Salary: $70,000
Bonus: $5,000
Employer Benefits: $4,000
Retirement Contribution: $3,500
Paid Time Off (PTO): $5,385
Other Perks: $1,000
Total Compensation: $88,885
Total compensation refers to the entire value of everything you receive from your employer in exchange for your work, not just your base salary.
Learn MoreTotal compensation software is a digital tool that helps employers calculate, display, and communicate the complete value of an employee’s compensation package, including salary, bonuses, benefits, and perks.
Learn MoreA Total Compensation & Rewards Statement is a personalized document that outlines the full value of an employee’s compensation, beyond just their base salary.
Learn MorePay transparency is the practice of openly sharing information about compensation, such as salary ranges, bonus structures, and pay policies, within an organization or in job postings.
Learn MoreA compensation and rewards strategy is a company’s structured plan for how it pays and rewards its employees.
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