Remuneration is a crucial factor in improving employee performance, both directly and through job satisfaction as a mediating variable. This study aims to analyze the effect of remuneration on employee performance with job satisfaction as a mediator at Politeknik Negeri Malang. The research uses a quantitative approach with a survey technique involving 60 employees. Path analysis is used to examine the relationships between variables. The results indicate that remuneration significantly affects job satisfaction and employee performance. Job satisfaction also acts as a mediator that strengthens the relationship between remuneration and performance. Performance-based remuneration, focusing on attendance and work achievement, has been proven to enhance employee satisfaction, which in turn contributes to higher productivity. These findings have implications for human resource management, suggesting that fair and performance-based remuneration policies not only improve employee satisfaction but also strengthen motivation and work commitment. Organizations are advised to consider job satisfaction in remuneration policies and expand research to other sectors for further validation.
