HR Glossary / Compensation

Compensation refers to any payment received by an employee in exchange for work, including salary, benefits, and bonuses. Compensation can also refer to money paid to compensate for a loss or an accident.

What Are the Types of Compensation?

The different types of compensation include:

  • Salary;
  • Hourly wages;
  • Commissions;
  • Overtime;
  • Bonuses;
  • Stock options;
  • Any type of allowance;
  • Benefits (insurance, leaves, retirement, etc.);
  • Tips;
  • Non-monetary compensation (recognition).

Start Scheduling
in Minutes.

14-day free trial. Easy setup. Cancel anytime.