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Performance related pay plays an important role in describing employee motivation towards work and their satisfaction from pay. The aim of the study was to explore performance related pay of employees of public and private sector universities of Pakistan. Our results indicate that performance related pay was positively correlated with motivation and job satisfaction (r= .557) was significantly higher than private sector employees. Simple linear regression demonstrated that demographic variables like young age, teaching experience, marital status, income, educational level and academic rank are predictors of performance related pay. Results also indicated that performance related pay (PRP) scale exhibit a high Cronbach Alpha.
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