What does annual compensation mean?

I just got a job offer that says 'annual compensation of 24k' instead of saying salary.

What does this mean- my pay would still be 24k right?? My take home pay would be what the the UK take home calculators say right?

Reply 1

hotpud

Original post by Iamamazing22

You are being compensated for the time you are giving to your new employer. Congratulations!

Reply 2

Miss Pulford

It's an often misused term becasue people think it sounds clever

as the 'total compensation' is the entire package i.e. salary, variable pay elements, allowances, pension and B-i-Ks

Reply 3

Iamamazing22

Original post by Miss Pulford

It's an often misused term becasue people think it sounds clever

as the 'total compensation' is the entire package i.e. salary, variable pay elements, allowances, pension and B-i-Ks

I don't understand?

My contract says my base salary its 24k... so my the home pay will be whatever 24k is after tax and reductions? Correct?

Reply 4

BenRyan99

Careers Forum Helper

Original post by Iamamazing22

I don't understand?

My contract says my base salary its 24k... so my the home pay will be whatever 24k is after tax and reductions? Correct?

Normally base salary refers to the amount you get not including bonuses. So it could be 24k plus x% before tax.

Reply 5

Napp

Could just be their phrasing but it could mean theyre including other benefits in it like health insurance, bonuses etc.

Reply 6

Iamamazing22

Original post by Napp

Could just be their phrasing but it could mean theyre including other benefits in it like health insurance, bonuses etc.

My contract says my base salary is 24k so I'm hoping that means bonus and benefits are on top of that? Would that be right?

Reply 7

BenRyan99

Careers Forum Helper

Original post by Iamamazing22

My contract says my base salary is 24k so I'm hoping that means bonus and benefits are on top of that? Would that be right?

Yes, I think this is likely to be what is implied.

Reflecting on what you've said and other have mentioned above, the fact they say base 'SALARY', this suggests that this is indeed just the salary and doesn't include benefits, despite what others have mentioned. And given they've gone to the effort to say 'BASE' salary, this suggests that this doesn't include any potential bonuses and the 24k is your guaranteed pre-tax & deduction salary, with any bonuses coming on top (tho these will also be taxed and reflected in monthly deductions).