This study aims to identify and explain the effect of material incentives variable (X1) and immaterial incentives variable (X2) simultaneously and partially on employee loyalty (Y). The sample of this research is 120 employees. From research conducted at PT. SIER (Persero), Surabaya showed Sig F <5% or (0.000 <0.005), which means together material incentives variable (X1) and immaterial incentives variable (X2) has a significant impact on employee loyalty variable (Y) so that yield conclusions H0 is rejected and Ha accepted. While partially through regression analysis, material incentives variable (X1) results 8.084 for t count > t table with Sig t 0.000 and alpha 0.05, then by partial material incentives variable (X1) has a significant effect on employee loyalty variable (Y). While immaterial incentives variable (X2) partially have significant impact on employee loyalty (Y) with a regression result of t count 4.274> t table 1.980 with Sig t 0.000 and alpha 0.0. Based from Beta of variable X1 results 0.610 and X2 results 0.323, then we conclude that X1 variable have most dominant impact toward Y variable.