Base salary vs total compensation

Start with the salary you can identify

Find the annual base salary or stated hourly wage in the written offer. Record the currency, expected schedule and start date beside it. For an annual salary, ask how payroll divides the amount across pay periods. An annual rate assumes the relevant full period of employment; it does not promise a full year of income after a midyear start or an early departure.

Use gross amounts throughout the comparison. The CFPB distinguishes gross income before deductions from net income after deductions. A salary headline therefore cannot tell you the amount deposited in your account. Compare employee benefit contributions separately rather than subtracting an assumed tax percentage from every component.

Give every additional component its own row

List annual bonus, commission, equity, signing payments and relocation payments individually. Mark each item as fixed under stated terms, a performance target, a discretionary possibility or unknown. If a recruiter supplies only a total, ask for its calculation. An undisclosed component belongs in an unknown column until clarified; filling it with zero would make the comparison look more certain than it is.

For equity, request the award type, units, valuation basis and vesting schedule. A four-year grant is different from the portion scheduled to vest during one year. The ability to sell shares can also depend on restrictions; the SEC explains resale conditions for restricted securities. Keep modeled equity value separate from cash available for regular expenses.

Compare benefits using information you can use

Employer cost and employee value are different views of compensation. BLS employer compensation costs include benefits, whereas an offer comparison may focus on salary, bonus and equity. Ask whether insurance, retirement contributions or paid leave are inside the quoted total. Use the same convention for both employers and label any benefit value you add.

Compare the actual plan details: your premium contribution, coverage, retirement match eligibility and waiting periods. A benefit can matter greatly without a confident dollar valuation. Keep these considerations alongside the pay table, especially when one offer has stronger coverage or a schedule that changes your household expenses.

Turn the breakdown into a useful comparison

Build separate views for regular cash, target cash, first-year compensation and later years. Match role scope and location when reading salary benchmarks. Check whether a benchmark measures base pay, offered wages or reported total compensation before placing your offer beside it. Finish with a short list of unanswered questions, then ask the employer to confirm those details in writing before deciding.