Total Remuneration
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Total remuneration is the sum of an employee’s annual compensation package including basic salary, incentives, commissions, and all financial and non-financial benefits.
It is taxable income and thus the employer must withhold income taxes and other payroll taxes.
It primarily includes:
- Basic Salary
- Incentives
- Bonuses
- Stock options
- Pension plans
- Financial benefits
- Non-financial benefits
There are two types of remuneration; direct and indirect. Direct remuneration includes financial benefits and indirect remuneration includes non-financial benefits such as insurance, child care assistance, educational opportunities, etc.
