ABSTRACT : The purpose of this study was to determine the effect of compensation on job satisfaction of permanent employees and contract employees of PT Sumber Alfaria Trijaya, Tbk. Data was collected by distributing questionnaires to 100 employees, consisting of 50 permanent employees and 50 contract employees of PT Sumber Alfaria Trijaya Tbk/Alfamart West Bekasi. Hypothesis testing in this study uses the Kruskal Wallis and Friedman Test to compare whether there is a difference in the level of job satisfaction from the compensation element received between permanent employees and contract employees of PT Sumber Alfaria Trijaya Tbk/ Alfamart. The results of the study showsignificance value of 0.00 < 0.05 that there is a difference in compensation between contract employees and permanent employees of Alfamart. Then has a significance value 0.399 > 0.05 There is no difference in job satisfaction between contract employees and permanent employees of Alfamart. In employment status and length of workhas a significance value of 0.000 < 0.05 the compensation received by employees has a significant effect on job satisfaction in terms of the lengthand employment status of Alfamart employees.An equal proportion of compensation to employees is able to maintain the company’s defense.

KEYWORDS -Compensation, Job Satisfaction, Kruskal-Wallis Test, Friedman Test