Author: Candice Zulu
When you receive a job offer or look at your payslip, it is easy to focus only on the number next to ‘net pay’. But your salary is just one part of your overall cost to company (CTC), the full value of what your employer spends on you as an employee.
Understanding your total package is important when comparing job offers or budgeting your finances. This total package is often referred to as your TCOE – Total Cost of Employment. It reflects everything your employer spends on you as an employee, and not just your take-home salary.
Here is what’s often included beyond your basic salary:
- Medical aid contributions: Many companies subsidise or contribute fully to your medical aid. Even if it is deducted from your salary, it is a benefit – especially when the employer pays a portion.
- Retirement fund contributions: This could be a pension, provident, or retirement annuity fund. Employers typically contribute a percentage of your salary towards your retirement, which helps secure your future.
- Group risk cover: This can include life insurance, disability, or critical illness cover. These are benefits you might not notice unless something happens, but they form part of your CTC and provide vital support.
- Bonuses or incentives: Performance-based bonuses or 13th cheques aren’t guaranteed, but if included in your offer or contract, they are part of your total earnings.
- Fringe benefits: Things like company cars, cell phone allowances, or access to wellness programmes can be considered taxable benefits and are part of your total remuneration package.
- Skills development and training: Support for studies, in-house training, or attending workshops are long-term benefits that contribute to your personal and professional growth.
Knowing your total package helps you appreciate the full value of your employment, beyond just what is paid into your bank account. It is also useful when negotiating future roles, understanding deductions, or comparing offers.
Need help unpacking salary structures or want to guide employees through what their package really means?
Contact us to find out more about our employee onboarding sessions and salary structure workshops.
Next in the series: How income tax works in South Africa – The basics