Total remuneration is everything you earn from your employer. It’s more than just a paycheck—it includes salary, bonuses, benefits, and perks. In short, it’s the full value of your compensation, not just your base pay.
What’s included in a total remuneration package?
A total remuneration package covers all the ways an employer rewards you. Here’s what’s typically included:
- Base salary: The fixed amount you earn before bonuses or benefits.
- Bonuses & incentives: Extra pay for hitting targets, commissions, or profit-sharing.
- Benefits: Health insurance, retirement plans, paid time off, and wellness programs.
- Perks: Company car, gym membership, stock options, or tuition reimbursement.
- Non-monetary rewards: Career development, flexible work schedules, and recognition programs.
Companies offer competitive total remuneration packages to attract and keep top talent. A strong package provides real value beyond salary.
Salary vs. total remuneration: what’s the difference?
Salary and total remuneration aren’t the same. Here’s the key difference:
- Salary is the fixed amount of money you earn, usually yearly or hourly.
- Total remuneration includes salary plus bonuses, benefits, and perks.
For example, if you make $60,000 in salary and get $5,000 in bonuses, $10,000 in benefits, and $2,000 in perks, your total remuneration is $77,000. Knowing this helps when comparing job offers and negotiating pay.
How to calculate total remuneration
Figuring out total remuneration is simple. Just add up all parts of your compensation:
Total remuneration = base salary + bonuses + benefits + perks + other incentives
Example calculation:
- base salary: $50,000
- bonuses: $5,000
- health & retirement benefits: $8,000
- stock options & perks: $3,000
Total remuneration:
$50,000 + $5,000 + $8,000 + $3,000 = $66,000
Employers use these calculations to stay competitive. Employees use them to negotiate better pay and benefits.
Why total remuneration matters
Total remuneration gives a full picture of what a job is actually worth. It helps both employers and employees make informed decisions about job offers, promotions, and career moves.
