Which of the following is an example of indirect compensation?

Indirect compensation refers to benefits that employees receive that are not directly monetary wages, such as reimbursements for expenses or benefits like health insurance, retirement plan contributions, or paid time off. In this context, reimbursements qualify as indirect compensation because they involve the company repaying employees for costs incurred, rather than providing direct salary or wages.

Base salary, bonuses, and overtime pay are all considered direct compensation. They represent payment for work performed or additional payments for extra hours worked. On the other hand, reimbursements reflect the company's recognition of employee expenses, which is why they fall under the category of indirect compensation. This understanding helps differentiate between various forms of employee remuneration and emphasizes the importance of both direct and indirect compensation in overall employee satisfaction and retention.