The main objective of this research is to try to explain the effect of direct compensation and indirect compensation toward employee performance of temporary staff UMY with job satisfaction as variable intervening. This research was conducted on temporary staff UMY in 2019. To achieve the research objectives, a total of 138 questionnaires were distributed using purposive sampling. In data analysis, this research uses Smart PLS software to analyze the respondent’s answers. Finding from the research revealed that: There is a significant effect between direct compensation and employee performance in temporary staff UMY. But on the other hand, indirect compensation does not affect significantly employee performance in temporary staff UMY. The research also shows that direct compensation and indirect compensation have a significant effect on job satisfaction and there is a significant effect between job satisfaction and employee performance. The finding of this research shows that job satisfaction able to mediate direct compensation and indirect compensation towards employee performance.