Abstract
The purpose of this study was twofold. First, to find out disparity in gross pay of the
employees serving in the same Basic Pay Scale (BPS) in the Federal Government of
Pakistan and to examine the causes and rationale of such disparity. Second, to
investigate the impact of perceived pay satisfaction on employee’s organizational
citizenship behavior (OCB). Both qualitative and quantitative data was collected from
250 employees working in eight federal government organizations (n=250). The
qualitative data was collected through interviews by employing key respondent
approach, while quantitative data was collected through the use of questionnaires. The
data analysis revealed substantial variation in gross pay received by equally placed (in
the same BPS) employees of the Federal Government. A model of pay-satisfaction – OCB
relationship was developed and tested by using the aforesaid data. The results of the
model testing revealed that pay satisfaction has positive significant impact on OCB.
Furthermore, motivation mediated the relationship between pay satisfaction and
organizational citizenship behavior. The study might be first of its kind and will
significantly contribute to the existing literature on pay satisfaction, motivation and OCB
relationship.