Asian Journal of Education and Social Studies

This study aimed to examine the perceived effect of performance-based incentives on the secondary school performance in Iringa Municipal. The study sampled a total of 89 respondents, particularly secondary teachers. The study collected data through both questionnaires and interviews. This mixed-method approach provided both quantitative insights and qualitative depth, enriching the understanding of how compensation affects performance. The mixed research design enables the study to compare the influence of performance-based incentives on the performance of public and private secondary schools in Iringa Municipal based on teachers' perceptions. Also, the results were drawn from teacher’s perception, which was triangulated descriptively with NECTA’S certificate of secondary education examination (CSEE). Particularly, the study used pass rates and quality rate (division I to III) for sampled schools in Iringa municipal for the past three years (2022-2024). Results revealed that bonuses, transport allowances, housing benefits, and hardship allowances had a measurable impact on teacher’s attendance, punctuality, and classroom engagement. These incentives motivated teachers to be more consistent, productive, and involved in their work. Moreover, the study shows that teacher’s performance has significant impact on the student performance. Als, the NECTA results between 2022 to 2025 shows that private schools in Iringa municipal have high quality performance compared to public schools. The study concluded that when extrinsic motivators are fairly and transparently distributed, it not only enhances teacher performance; but also, the success of the school.