# Describe how total job benefits and total employee compensation differ.

Posted By Admin @ September 03, 2022

#### Question:

Describe how total job benefits and total employee compensation differ.

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Explanation:

While employee compensation and job benefits are the terms that might overlap in meaning, they are usually understood to recognize two different ideas of remuneration.

Employee compensation implies or refers to the salary, annual incentives and longer term incentives like stock options and other equity compensation that he/she works for.

Job benefits as it is defined in ERISA (US law), implies health and welfare plans and pension plans, such as savings and paid time off.

Other benefits include: housing paid by the employer, with or without free utilities; insurances (health, dental, life etc.); disability income protection; retirement benefits; daycare; tuition reimbursement; sick leave; vacation (paid and non-paid); social security etc.

Compensation is purely the monetary aspect.

Benefits are the non-monetary items like heath insurance, even if you have to pay for it partly out of your own pocket.

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