Compensation is the remuneration employees receive for their services and contributions, primarily as salary or wages. It consists of direct compensation, which includes monetary rewards, and indirect compensation, which encompasses non-monetary rewards such as paid time off and flexible work arrangements. Understanding these types of compensation is essential for recognizing employee value and motivation.

1. BY : ANCY JOY
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2. Compensation is the remuneration awarded to an employee in
exchange for their services or individual contributions to your
business. The contributions can be their time, knowledge, skills,
abilities, and commitment to your company or a project.
In simpler words, compensation is the money received
by an employee from an employer as a salary or
wages.

3. Compensation is the remuneration awarded to an employee in
exchange for their services or individual contributions to your
business. The contributions can be their time, knowledge, skills,
abilities, and commitment to your company or a project.
In simpler words, compensation is the money received
by an employee from an employer as a salary or
wages.

4. DIRECT COMPENSATION
Direct compensation consists of
the monetary rewards that an
employee receives for their work.
Some important types of direct
compensation are:
INDIRECT COMPENSATION
Indirect compensation consists of
the non-monetary rewards that an
employee receives for their work.
Some important types of indirect
compensation are:
• Salary/Wages
• Incentives
• Paid Time Off (PTO)
• Flexible work arrangements