This module is a comprehensive guide to understanding the concepts, principles and practices of compensation management, with special emphasis on Malaysia’s work culture and legislation. It begins with an introduction to the basics of compensation management, followed  by an in-depth discussion of the Compensation Model, which covers objectives, policies, and reward structures. Emphasis is placed on internal alignment to ensure fairness in salary structures based on work value. Job analysis is presented as the foundation for developing a work structure and implementing objective job evaluation. This module also addresses the design of salary levels, reward mixes, and compensation structures that are competitive and support organisational strategies. Performance appraisal is described as an important tool in linking employee contributions with performance-based rewards. In addition, employee benefits such as EPF, SOCSO, insurance, and paid leave are explained as essential elements for enhancing workforce well-being and motivation. Finally, legal issues related to compensation in Malaysia are clearly outlined to ensure compliance and to protect the rights of both employees and employers. This module brings together theory and real-world applications in today's compensation system. It is suitable as a reference for students of higher learning institutions, human resource managers, and individuals involved in designing a fair and effective reward system.