Employee’s job performance can be increased by providing competitive salary, rewards, promotion and Job security. These factors play essential role to enhance employee job performance. The aim of this study is to investigate the effect of compensation practices on job performance. A questionnaire survey conducted and data have been collected from 200 respondents who are working in different Public sector universities. SPSS has been used for data analysis and the analysis of the data has confirmed a positive relationship between compensation and job performance. Based on the result of this study, management of the public universities should be paid attention to the compensation to the employees, which would result in enhanced job performance. This study plays an essential role in persuading the policy makers to think over the factors which effect on employees job performance in public universities. The findings of this research are valuable, which can be useful for the organization in order to tackle such issues again.
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