A compensation package refers to a combination of various financial and non-financial benefits that an employee receives in exchange for their services. This typically includes salary or wages, bonuses, pensions, health insurance, life insurance, paid leave, and other perks such as retirement plans, stock options, or childcare assistance. The term compensation package is often used interchangeably with the phrase "total rewards," which emphasizes that employees receive more than just monetary benefits from their employer, including recognition, career development opportunities, work-life balance, and a sense of purpose. Overall, a competitive compensation package helps attract and retain talented employees while also aligning with the organization's goals and values.