A compensation package is the combination of salary, benefits, and other incentives provided by an employer to an employee in exchange for their work. This can include base pay, bonuses, health insurance, retirement plans, vacation time, and other forms of compensation.

Example

An employer may offer a compensation package to a new hire that includes a base salary of $70,000 per year, health insurance, a 401(k) retirement plan with a company match, 20 days of paid time off, and a performance-based bonus.