Abstract
Employees are the backbones of all organizations and the most important assets that help to achieve the goals and objectives of an organization or institution. Government departments and public institutions depend on the performance of government employees to respond efficiently and effectively to the needs of the citizens. This study analysed performance-based remuneration and the impact it has on government employees’ performance. It used the experiences of different countries around the world to demonstrate the successes and shortcomings of performance-based remuneration in the public sector in respect of government employees’ performance. Moreover, the study aimed to investigate the effects of performance-based remuneration on the performance of government employees. The implementation of performance-based pay systems has been a subject of interest and debate in the public sector for its potential to enhance employee motivation, productivity, and overall organizational effectiveness. Hence, this study aimed to provide insights into the relationship between performance-based remuneration and the performance outcomes of government employees. An extensive literature review of academic journals, research reports and policy documents related to performance-based remuneration in the public sector is provided for in this dissertation. By highlighting the importance of meticulous design, transparent communication and proactive conflict resolution strategies, this study created a roadmap for Public Service Authority to navigate the path toward effective implementation of performance-based remuneration. The recognition that minor obstacles are a natural facet of any transformative process serves not to dampen the prospects but rather to fortify the commitment required for successful execution.