Indirect compensation is not paid directly to the employee. It is calculated as an additional component to the base salary figure. It includes everything from legally obligated health insurance to child care, social security etc.
The various components of the indirect compensation for the employees may be:
Insurance: This covers life and accidental insurance.
Leave Travel: This includes travel allowances and leave allowances for holidays
Leave Policy: This includes sick leave, casual leave, maternity leave and other leaves which an employee is entitled to.
Retirement Benefits: This includes pension allowances and other old age benefits
Flexible timings: This includes the option to come to office at timing apart from normal office hours in case of emergency and personal problems.
Hospitalization: This includes medi-claims and other health benefits, claims of medical check up and medication expenses and more.
Overtime Policy: This includes being paid for working beyond normal office hours for their service and associated facilities.
Holiday Lodges: This includes access to company guest house and guest quarters on company visits or holidays.