For most employees, pay is a necessity of life. Compensation level determines one’s lifestyle, status, and feelings toward one’s employer. The compensation received from working provides for individual and family needs and is one of the major reasons why employee perform a job. The compensation system may be defined as the system of rewards that an individual receives in return for organizational performance. Compensation not only satisfies one’s basic needs, but pay and the things it buys are also represents the recognition of the individual’s worth to the organization, thereby providing self-esteem to the employee.