Science Journal of Business and Management 2016; 4(6): 212-222 http://www.sciencepublishinggroup.com/j/sjbm doi: 10.11648/j.sjbm.20160406.16 ISSN: 2331-0626 (Print); ISSN: 2331-0634 (Online) The Effect of Remuneration, Job Satisfaction and OCB on the Employee Performance Hiqma Nur Agustiningsih * , Armanu Thoyib, Djumilah H., Noermijati Noermijati Faculty of Economics and Business, University Brawijaya (UB), Malang, Indonesia Email address: hiqma.niken@gmail.com (H. N. Agustiningsih) * Corresponding author To cite this article: Hiqma Nur Agustiningsih, Armanu Thoyib, Djumilah H., Noermijati Noermijati. The Effect of Remuneration, Job Satisfaction and OCB on the Employee Performance. Science Journal of Business and Management. Vol. 4, No. 6, 2016, pp. 212-222. doi: 10.11648/j.sjbm.20160406.16 Received: November 24, 2016; Accepted: December 7, 2016; Published: January 4, 2017 Abstract: This study aims to: (1) analyze the effect of remuneration, job satisfaction and Organizational Citizenship Behavior (OCB) on employee performance; (2) analyze the job satisfaction as a mediating variable of the effect remuneration on employee performance; and (3) analyze OCB role in mediating the effect of remuneration and job satisfaction on employee performance. Data was collected using saturated sampling method. The population consisted of 138 Account Representative (AR) Supervision of the work in the Tax Office in Malang area, the Regional Office of Directorate General of Taxes East Java III. Data analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM) or usually called Partial Least Squares Path Modelling (PLS-PM). The results showed that the remuneration is significantly and negatively effect the performance of AR Supervision, but the satisfaction and OCB do not significantly effect the performance of AR Supervision. Furthermore, remuneration and satisfaction positively and significantly effect AR satisfaction and OCB respectively, but remuneration does not significantly effect OCB. In relation to the indirect effects, job satisfaction and OCB do not mediate the effect of remuneration on the AR Supervision performance, neither OCB mediate the effect of job satisfaction on the AR Supervision performance. The results of this study indicate that the concept of the higher the remuneration received by employees, the higher their performance will be, only occurs in normal conditions. If there are obstacles in the work implementation process, then this concept does not apply. Therefore, the Directorate General of Taxation institution must provide the solution and attention to the barriers experienced by AR Supervision in order to maximize their performance. Keywords: Remuneration, Job Satisfaction, Organizational Citizenship Behavior, Employee Performance 1. Introduction In the last two decades, Indonesia's national income tax sector increasingly important because over the years, the proportion of state revenues from the sector increases. If in 1998 the proportion of tax revenue amounted to 61.6% of the total national income, in 2004 increased to 78.3% and reached Rp. 232 trillion rupiah, comparing to tax revenue in 1994 which only amounted to 37 trillion rupiah. Even in 2015 the national tax revenue reached Rp. 1,061 trillion from Rp. 1,295 trillion target (82%). Based on these achievements, in 2016 the target of national tax revenue set at Rp. 1.360 trillion [42]. In connection with the increasing tax revenue target, society as a whole really hope the performance of tax officials is increasing, because nearly 80% of the Indonesian budget relies on tax revenue [42]. According to Handayani, total tax revenue is highly dependent on five factors: (1) the tax system, (2) the tax regulations, (3) the tax data and information systems, (4) infrastructure and (5) human resources. Of five factors, the human resource factor, namely the tax officials becomes a very important factor in achieving the target of the tax revenue, because the state requires formidable figure tax officials that are physically and mentally strong. In addition, Luthans (2011) [35] confirms that tax officials should have the fortitude, tenacity and patience to devote his life to the nation. Because the role of tax officials is increasingly important, their performance in their profession is very noteworthy. One of the policies pursued by the government to improve the tax officials’ performance is to fix the remuneration system in order to motivate tax officials in achieving organizational