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In healthcare system as in hospitals, nurses play integral role to provide all healthcare services in a hospital at its optimum.The nurses' twenty-four hours availability of services in hospitals has made them the most common healthcare persons.Nurses' work performance is nurses' activity in implementing command, tasks, and responsibilities at its best in order to achieve and manifest their professional goals and the organizational unit goals.The purpose of the study is to identify the effects of healthcare allowance compensation received by the nurses and the nurses' job satisfaction on their own work performance through organizational commitment as the mediating variable.The study applies questionnaire as the instrument to collect data and process the data by applying Structural Equation Model (SEM) to conduct empirical test on model of the study, which is respondents who work as nurses in type-A hospitals in Jakarta area.The results of the study indicate that the healthcare allowance compensation affects the organizational commitment; the job satisfaction affects the organizational commitment; the healthcare allowance compensation does not affect the nurses' work performance; the job satisfaction affects the nurses' work performance; the organizational commitment affects the nurses' work performance; and the organizational commitment mediates the correlation of the healthcare allowance compensation and job satisfaction on the nurses' work performance. KEY WORDSHealthcare allowance compensation, job satisfaction, work performance, organizational commitment, nurse.Nurses, as part of healthcare system in every hospital, play integral role in order to provide healthcare services at its optimum.It is related to the nurses' twenty-four hours availability of services in hospitals has made them the most common healthcare persons with the percentage of 40 to 60 percent (Swansburg, 2000).There are fundamental factors that affect the nurses' work performance; one of them is the healthcare allowance compensation.It is fundamental because it affects the nurses' behavior as the employees of hospitals to do their best at work and it can excel their work performance.The charge nurses' work performance is the main factor in achieving the optimal service in hospitals.Nurses' work performance is nurses' activity in implementing command, tasks, and responsibilities at its best in order to achieve and manifest their professional goals and the organizational unit goals.A fair and reasonable compensation affects the level of a nurse's organizational commitment on one's job.The compensation that is investigated and analyzed in the current study is the healthcare allowance compensation.The researchers focus on the measurement of the effects of the healthcare allowance compensation, which is under the Indonesia laws and regulations (legally required benefit), namely the employees' participation in BPJS Kesehatan program (Indonesia's national healthcare allowance).There are five factors that can be applied to improve a nurse's work performance like job promotion, job evaluation, working environment and supporting facilities, motivation and compensation, and opening the chance to continue the education to the next level (Fort dan Voltero, 2004).Job satisfaction on a nurse is an essential concept within the general job satisfaction level, even though some previous studies point out that every job satisfaction has
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