1. What is Total Compensation?

Total compensation represents the complete financial package an employee receives, including base salary and all mandatory social security contributions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Salary — Annual base salary in currency
• Social Security Contributions — Mandatory employer contributions in currency

Explanation: This calculation provides the true cost to the employer and total value to the employee.

3. Importance of Total Compensation Calculation

Details: Understanding total compensation helps both employers budget accurately and employees understand their full remuneration package.

4. Using the Calculator

Tips: Enter salary in currency/year and social security contributions in currency. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in social security contributions?
A: This typically includes mandatory pension, health insurance, unemployment insurance, and other government-mandated benefits.

Q2: How does this differ from gross salary?
A: Gross salary is what the employee receives before taxes, while total compensation includes all employer-paid benefits and contributions.

Q3: Are bonuses included in this calculation?
A: This basic calculator focuses on base salary and social security. For comprehensive compensation, bonuses and other benefits should be added separately.

Q4: How often should this be calculated?
A: Whenever there's a salary change or when social security contribution rates are adjusted by the government.

Q5: Can this be used for contract workers?
A: Only if the contract worker receives the same social security benefits as regular employees.