The purpose of this study is to identify and explain the significance effect of the Material Incentive and Non-Material Incentive to Work Motivation, the significance effect of the Material Incenvtive and Non-Material Incentives to Employee Performance, and the significance effect of the Work Motivation to Employee Performance.This type of research used in the study is explanatory research and research methods used is quantitative. The study was used to test the hypotheses that have been proposed that there is a significant effect between the independent variables of Material Incentives, Non-Material Incentive to Work as an intervening variable Motivation and Employee Performance as the dependent variable. The population in this study accounted for 36 employees of PT Jamsostek (Persero) Malang. Total sample is 36 employees by using jenuh sampling. This study used descriptive statistical analysis and inferential statistical analysis used to determine the elements of variable Material Incentives, Incentives Non Material, Work Motivation and Employee Performance in PT Jamsostek (Persero) Malang. The data were processed using the computer program SPSS 15 for windows. Based on the results of inferential analysis using path analysis which shows the significant value of F is 0.000 <0.05 (alpha) obtained path coefficient is 0.345 and 0.479 for Material Incentives (X1) and Non-Material Incentive (X2) to the Work Motivation ( Y1), the value of the path coefficient is 0.322 and 0.316 for Material Incentives (X1) and Non-Material Incentive (X2) to the Employee Performance (Y2), and path coefficient is 0.346 for Work Motivation (Y1) to the Employee Performance (Y2). Similarly, Adjusted R Square value obtained is equal to 0.497 for Work Motivation (Y1) and 0.686 for Employee Performance (Y2). This shows that the variable of Material Incentives and Non Material Incentives have a significant effect on work motivation and performance of employees either directly or indirectly.