The formula to calculate the Total Compensation (T) is:
\[ T = B + S \]
Where:
Base compensation refers to the initial salary paid to an employee, not including any bonuses, benefits, or other forms of compensation. It is the fixed amount of money that an employee receives on a regular basis, typically expressed as an annual salary or hourly wage. Base compensation is a critical component of an employee's total compensation package and serves as the foundation upon which additional earnings, such as bonuses and incentives, are built.
Let's assume the following values:
Using the formula to calculate the Total Compensation:
\[ T = 50,000 + 5,000 = 55,000 \]
The Total Compensation is $55,000.
