Pay and compensation benefits play a vital role in explaining the attitude of employees towards their organization and also they explain what the organization is made up of. Hayat et al. (2010) emphasized that Pays and Benefits are the most important factor that influence the job satisfaction of an employee. The basic role of rewards and recognition in any organization is to define the system to pay the employees and to communicate that system to the employees so that they can create a link between their rewards and performance which would enhance an employee’s job satisfaction (Flynn 1998, cited in Rizwan 2010). In Hong Kong, base salary, merit pay, year-end bonus, annual leave, mortgage loan, and profit sharing are the most important factors to retain and motivate employees. In China, base salary, merit pay, year-end bonus, housing provision, cash allowance, overtime allowance, and individual bonus were the most important factors to retain and motivate employees. (Chiu, 2002; Luk, 2002; Tang, 2002) whereas among extrinsic factors employees indicated instruments i.e. basic salary (different for each scale), increment of 15% in basic pay annually, full basic pay bonus on Eidains, medical expenditures refunds, Far area bonus, Yearend bonus, house loans, car loans etc .Khan et al. (2011) revealed that the corporate organizations including the banks which attain customers and employees loyalty have successfully conquered high profits, better pays, and rewards structure and have retained their most talented and determined employees. Employee’s commitment depends upon their satisfaction with their pay packages, jobs and relationships with other employees. The empirical literature has emphasized the role of the relationship between pay and performance, measured as the pay-performance sensitivity of managerial compensation structures. Jensen and Murphy (1990) document that