What is Indirect Compensation?

That smartphone you’re using to read this article – who pays for it? If your company does, it’s part of your indirect compensation. Indirect compensation is any benefit to the employee that doesn’t come in the form of cash. You may not even realize the non-cash compensation that you have.

Indirect compensation provides the benefits side of “compensation and benefits” that employees receive. Sometimes, people use the word “perk” or “employee benefits” to describe this type of compensation.