The research aim was to explain the effect of direct and indirect compensations to employee's work motivation in Perusahaan Umum (Perum) Jasa Tirta I Malang simultaneously and partially. This explanatory and quantitative research used questionaire, observation, documentation and literatures. The samples of this research were 25 employees. The data were analysed using descriptive analysis technique, classical assumption test and linear regression analysis with hypothesis test which used simultaneous and partial test. Direct and indirect compensations affected employees' motivation simultaneously significant. The test results obtained simultaneously F value 36,752 (Sig F = 0,000). Therefore, F value > F table (36,752 > 3,443) and Sig F < 5% (0,000 < 0,05). Direct compensations affected employees' work motivation partially significant. The test results obtained partially t value 2,587. This value was higher than t table which is 2,074 and Sig t < 5% (0,05). Indirect compensations affected employees' work motivation which could be proved by partial test with t value 2,368. This value was higher than t table which is 2,074 and Sig t < 5% (0,05).