Abstract

The study aims to test the direct and indirect financial compensation on job satisfaction among public service employees in five branches of the Ministry of Social Affairs in the southern Palestinian governorates. Identifying the impact of financial compensations dimensions (direct; job, salary, various bonuses, and indirect; promotion, end-of-service benefits, and retirement benefits) on the job satisfaction. It adopted descriptive-analytical approach, where a survey questionnaire was developed and distributed to a sample-representing %50 of the study consisting of 228 employees, and a recovery rate of 91%. The study results showed that there is a medium significant effect for the two dimensions; the job and end-of-service benefits, and a low significant effect for the dimensions; salary, various bonuses, promotion, and retirement benefits in the government compensation on the levels of job satisfaction. It was proven that the government financial compensation varies between medium and low impact. Moreover, there is no commitment in the regulations for granting compensation, which negatively affects the levels of job satisfaction, due to defective mechanisms for applying the direct and indirect financial compensation, and the discrepancy of standards set by the Public Service Law. Finally, the study recommends taking clear strategic measures, and addressing the deficiencies of the mechanisms related to (job, salary, various bonuses, promotions, end-of-service benefits, and retirement benefits), to develop them in order to increase effectiveness of government’s financial compensation. In addition to consolidating principles of justice, fairness and equality in granting them, and equitable the right of women to increase job satisfaction, and raise the level of performance and productivity.