Understanding pay satisfaction in public sector: evidence from Sri Lanka

Abstract

Purpose The purpose of this paper is to investigate the determinants of pay satisfaction of executive-level employees in public sector of Sri Lanka, which follows an open pay system. Design/methodology/approach The perceptions of equity, love of money, justice and seven individual and socio-demographic characteristics were investigated as the determinants of pay satisfaction. The survey methodology is used for data collection. Findings The findings showed equity, love of money, justice, the years of work experience in public sector, the number of income earners in the family and the number of dependents in the family as the significant predictors of pay satisfaction. Gender is identified as a significant predictor of love of money. Originality/value This study investigated the dynamics of pay satisfaction in a novel research context – i.e. public sector, an open pay system, gender equality in the pay system and an Asian developing country.