IMPLEMENTATION OF PERFORMANCE ALLOWANCE COMPENSATION IN THE INDONESIAN NATIONAL POLICE

Abstract

This study examines the implementation of performance allowance compensation within the Kepolisian Negara Republik Indonesia as an instrument to enhance employee motivation and organizational performance. Performance allowances are regulated under Peraturan Presiden Nomor 103 Tahun 2018 and Peraturan Kepala Kepolisian Nomor 7 Tahun 2020, which mandate monthly, performance-based assessments tied to job class and allowance indices. A qualitative design with a library research approach was employed, drawing on books, scholarly articles, official regulations, and institutional documents. The analysis focuses on the procedural mechanisms, assessment criteria, and practical implementation of performance allowances. Findings indicate that, although the regulatory framework systematically links allowances to job grading and performance evaluation systems, implementation in practice remains heavily oriented toward administrative indicators, particularly attendance, rather than measurable daily productivity and work achievements. The study reveals a misalignment between the policy’s intended performance-based incentives and its operational execution. High-performing personnel often receive the same compensation as less productive employees, weakening the motivational impact of the allowance system. This study contributes to human resource management literature by highlighting the need to redesign performance assessment mechanisms to better integrate productivity indicators, thereby ensuring that performance allowances function as effective, equity-based motivational instruments in public sector organizations.