Dissertation (MA Public Administration)This dissertation was an attempt to undertake the study on finding out the impact of remuneration on performance of the Local Government staff in Tanzania, particularly Ludewa District Council found in Iringa Region as a case of study. It was conducted within a period of four months, starting from November, 2012 to March, 2013.The study sample size, under this context was 40 respondents, including 8 Heads of Departments, 8 General Departments Staff Members, 8 Councilors,8 LGA's Stakeholders(NGO's) and 8 ordinary people from Ludewa Town ward. Selection of respondents adhered to age, gender, , marital status and education levels criteria. The study employed both Qualitative and Quantitative Research Methodologies. Tools used were Questionnaires, Interviews and Focus Group Discussion. The study revealed that remuneration has a great impact on the LGA staff performance, hence, it was found that the current LGA staff's minimum salary is not satisfactorily influential over the employees performance. Accordingly, respondents recommended that the minimum basic salary to fall between Tshs. 600,000/- and 1,200,000/-. It was also observed that only 5 percent (%) of the LGA staff (including heads of departments) enjoyed an attractive remuneration of basic salaries ranging between Tshs. 1,200,000/- and 3,000,000/-. Furthermore, the findings showed that more employees‟ allowances should be offered to the LGA staff. Lastly, it was recommended by the researcher that, in order to enhance the sustainable LGA staff good performance on service delivery, the council is responsible of improving the current local social services like water, electricity, transport and communication so as to make employees be able to work under a more conducive social environment. This may also enhance work morale, thus good performance.