What is meant by the term otal compensation?
Total compensation refers to salary plus the benefits such as retirement, health insurance, sick and annual leave received by the employee. Since all of these benefits have value and represent a ‘cost’ to the state, they are a form of compensation just like direct salary. The value of the benefits package for a state employee with an average salary of $28,600 with 5 years of service and married and with dependents is approximately 34% of total compensation. In other words, the ‘total compensation’ for that employee is actually $43,000.
