What is Total compensation?

Total compensation

Total compensation is the complete package of an international remote role: base salary, variable pay, equity, learning and equipment budgets, time off and health cover. Comparing base salary alone across countries leads to the wrong conclusion almost every time.

Two offers with the same gross figure can differ by thirty per cent in real value depending on how they are taxed, which contributions they include and what the company covers. Before negotiating, translate each component into a comparable annual net figure, including what you would otherwise have to fund yourself.

Also called: total comp, compensation package, global compensation

Related terms

Location-based payLocation-based pay is the practice of setting a remote role's salary according to the cost of living where the person lives rather than the value of the work. The same function can be paid very differently to two people on the same team.
Fractional roleA fractional role is a senior position held part-time for several companies at once, typically in leadership or specialised functions. It gives small companies access to senior experience they could not hire full-time, and gives the professional diversified income and risk.
Multi-currency accountA multi-currency account lets you receive, hold and convert money in several currencies within the same account, with local banking details in different countries. It avoids every international payment going through a conversion with a hidden margin, which is where much of the income is lost when invoicing abroad.