Employee compensation differs from country to country. The compensatory benefits enjoyed by the employee usually depend on the firm in which the person works. It is usually the organisation's responsibility to explain to the employee the different types of compensation which is available to him. There are mainly two types of employee compensation offered to employees namely direct compensation which is usually in monetary terms and indirect compensation which might be an aid to the direct compensation or perquisites. Usually, indirect compensation is an addition to the direct compensation offered to the employee.
The main compensations offered to the employees include Basic Pay, Bonus Pay(Overtime Pay), Commission, and a monetary or fixed bonus. Employees will always receive these types of compensation irrespective of the organisations they work in. The employees enjoy certain non-monetary compensations like paid off leave, meals, childcare, car etc. these are given to the employees to increase their work efficiency. Compensations like training and development are also given to improve their skills and expand their knowledge
The compensation offered to the employees can be stated under 5 heads i.e., Salary; which means the basic salary offered, commission; an addition to the salary earned according to the performance in the firm, hourly compensation; which is also known as overtime pay which the employee receives for working more hours than prescribed, bonus; which are usually given to the employees at a festive season or on special occasions and total compensations which includes all other rewards which are included in the compensation package of the employee.
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