Indirect compensation includes non-monetary benefits provided to workers, such as pension funds, mobile phones, company cars, health and life insurance, overtime pay, and annual leave. In fact, it includes everything from legally obligated health insurance to social security, child care, and more. It is essential to understand that employers can include standard contractual, non-monetary features covering annual leave, as well as valuable benefits such as healthcare, in indirect compensation. Indirect compensation differs from direct compensation, which is monetary compensation paid directly to employees for their services, starting with their salary. Instead of being paid directly to an employee, indirect compensation is calculated as an extra component of the base salary.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.