What is Compensation ?

‘Compensation’ is defined as the remuneration provided to an employee in lieu of his or her services. It is distinct from salary as the compensation would include other benefits too apart from the monetary benefits.
Various kinds of extra benefits provided to an employee like house rent allowance, travel allowance, gym membership, overtime pay, bonuses, stock options, etc. are all a part of the employee compensation. It helps keep the employee motivated and loyal to the company.
There are various types of employee compensation, with the major ones being direct and indirect. Direct compensation refers to the benefits provided to the employee directly. Indirect compensation includes the indirect benefits which the employees get from the company. It includes insurance cover, retirement benefits, incentives, equity-based programs, etc.

More HR Terms


What are Expenses?   With respect to HR, ‘Expenses’ refer to the additional expenses incurred by the employees while performing their daily duties, which are

Wellness Program

What is Wellness Program ?    The term ‘Wellness Program’ refers to a strategy applied by individuals who take up healthy lifestyle initiatives to stay

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