“…Additionally, Gary (2019) states that compensation consists of two components, namely (1) direct cash payments in the form of salaries and incentives, and (2) indirect payments in the form of allowances and insurance. Compensation has three dimensions, namely the dimensions of direct financial compensation, the dimensions of indirect financial compensation, and the dimensions of non-financial compensation (Bahtiar and Sudaryana 2020;Vance and Paik 2015). Compensation is very important to improve performance because it is a source of income for teachers and their families and has a psychological impact on teachers in carrying out their duties as educators, for example in increasing morale (Sofi'i et al 2022).…”