Which of the following is an example of indirect compensation?

Indirect compensation refers to benefits and perks provided to employees that are not part of their direct salary or hourly wages. Health insurance is a clear example of indirect compensation as it is a non-cash benefit that employers provide to assist with employees' medical expenses. This kind of compensation can enhance an employee's overall financial wellbeing and job satisfaction without increasing their direct hourly pay or salary.

Overtime pay, commission, and year-end bonuses are all forms of direct compensation. They are cash payments that employees receive directly as a result of their work performance, hours worked, or achieving certain benchmarks. In contrast, health insurance, as indirect compensation, is critical because it adds value to the employment package and supports employees’ health and security outside of straight monetary compensation.