1. Finance
  2. Employee & Payroll

Benefits as a Percentage of Salary

Percentage

The proportion of total benefits expense to the total salary expense. This metric provides insight into the company's compensation structure, helping to assess the attractiveness of its total compensation package. A high percentage indicates a generous benefits package.

Formula

(Total Benefits Expenditure / Total Salary Expenditure) x 100

Example

If the total benefits expense is $250,000 and the total salary expense is $2,500,000, the percentage would be 10%.