Abstract The aim of this study was to diagnose the incentive system of payment and how it affected the employees’ performance of the Mashhad Water and Wastewater Company. The research method was descriptive-survey. The statistical population of this study was all employees of ABFA Company in Mashhad, which the total number was 500 people. 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formula was used to determine the sample size (123 people). The stratified sampling method was selected according to the size. In this research, the society was divided into several classes. In category 1, company and zone 3 headquarters, zone 1, zone 2, Water Treatment Plant No. 1, warehousing affairs, and zone 4, were examined, and in the category 2, the management levels were examined that were considered with the status of job title. Researcher-made questionnaires were used to collect field data. In this study, the validity of the questionnaires was done in content method and the validity of the questionnaires was confirmed. This research includes 3 main hypotheses. Spearman correlation test was used to test the research hypotheses. All the main hypotheses of the research were confirmed as follows: 1- There was a positive and significant relationship between salaries and job benefits with the performance of ABFA employees. 2- There was a positive and significant relationship between bonuses and overtime and the other cash payments with the performance of ABFA employees. 3- There was a relationship between facilities and welfare services (non-cash payments) with the performance of ABFA employees. At the end, it was presented the necessary suggestions for improving the incentive-payment system in Mashhad Water and Wastewater Company.

Keywords