Teacher motivation has become an important issue given their responsibility to impart knowledge and skills to learners. Consequently,this study investigated the impact of remuneration on the motivation of university graduate teachers in public secondary schools in Kinondoni municipality. Specifically, the study sought to assess the effects of allowances on the motivation of university graduate teachers, to determine the effects of provision of housing on the motivation of university graduate teachers, to find out the relationship between basic salary and motivation of university graduate teachers and to identify the effects of healthcare on the motivation of university graduate teachers. A mixed research approach was adopted and embedded research design was employed where a total sample of 96 respondents were consulted, but also the researcher consulted twelve (12) school heads and the District Education Officer (DEO) for Kinondoni secondary schools so that to get their explanation on the problem. The researcher used structured questionnaire with both closed and open-ended questions for university graduate teachers and key informant interview guides for head teachers and DEO. The research findings revealed that teachers’ motivation as the result of allowance provided was down. There is a strong relationship between basic salary and motivation of teachers, that once the basic salary satisfies then teachers’ motivation become high and the vice versa. The absence or inadequate of housing for teacher to accommodate revealed disappointing and demotivate teacher. Teachers revealed to be motivated with health services under the National Health Insurance Fund (NHIF). In order to improve teacher motivation and performance at work,the study recommendedproviding allowances especially transport and housing allowances, but also increasing in the basic salary of university graduate teachers to match the cost of living, and strengthening of supervision as well as instituting awards for good performance among others.