In general terms does the pay package for a job also include the vacation time? For example if a company offers you 10 days of paid vacation, do the include the monetary value of those vacation days, when they tell you that the complete package is worth n dollars?

In other words, when someone says they make 100k a year, does that mean 100k base salary or is it including all the benefits (including monetary value of the vacation)?


Generally, pay packages break down into salary, stock options, bonuses, time off, and other benefits, so in a sense it is included.

The n dollars presumes you will use the 10 days of vacation time and thus it isn't necessarily a bonus that one can get an extra $x dollars by not taking time off though some companies may allow an employee to cash out their vacation time.

When someone says they make a 100k a year that would likely be a combination of base salary, overtime and bonuses which could be cash or restricted stock, but not necessarily the monetary value of other benefits like health insurance or other things that may be covered by the company.

I've worked in Canada and the US, so there may be differences on location here.

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    I would include restricted stock as part of a "salary". I know a few people who would say "I make X$" where they actually make some percentage in cash and some percentage in restricted stock units. If they just said their cash amount it would make them seem like they make under market. – user8588 Oct 24 '13 at 19:23

Formally, everything that you get from your employer compromises your pay package - leave, stock, insurance, base pay, bonuses.

Informally, it typically refers to just base pay - paid vacation is simply lumped in with the yearly total. So, someone that earned 3k a month, but with no vacation, would say that he made 36k a year, but so would someone that made the same 3k a month, but with 4 weeks of paid vacation time.

A company should be speaking formally, and giving you hard numbers for the various components. A prospective employer should be open about the nature of your compensation, how much salary/hourly, insurance coverage, retirement benefits, etc.


the short answer is No - I would say your pay is what your contract of employment says it is. The question of annual leave entitlements is not important If you dont take any leave you dont get paid more than if you take 100% of it - thats what salary means your not paid by the hour you get x per year divided into 12 or 24 payments.

There may be other elements on top (Xmas bonus for example) but they will probably not be contractual.

For example my previous employer matched up to 5% and allowed selling and buying of up to 3 days leave but that was outwith the main contract I signed.

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