Total remuneration is the total compensation package that an employee receives from their employer, which includes items other than the base income. Total remuneration is subject to taxation, and employers are responsible for withholding income taxes and other payroll-related taxes. The foundational element of total remuneration is the basic salary, which represents the fixed amount paid to an employee regularly for their work.
Incentives, such as performance-based bonuses or commissions, are included in total remuneration to reward employees for achieving specific goals or exceeding performance expectations. Additional bonuses, apart from performance incentives, may be included in the total remuneration package. Some organizations offer stock options as part of the total remuneration package, allowing employees to purchase company stock at a predetermined price. Contributions to pension plans or retirement savings are also considered part of total remuneration.