<![CDATA[Appropriate performance allowances and optimal work motivation are important factors in improving employee performance in government organizations. This study aims to determine and analyze the effect of performance allowances on employee performance mediated by work motivation at the Office of Public Works and Spatial Planning of Asahan Regency. This study uses a causal associative quantitative approach. The sample used was the entire population of employees totaling 145 people with a saturated sampling technique. Data analysis was carried out using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results showed that performance allowances did not have a significant direct effect on employee performance, with a T-statistic value of 0.900 <1.96 and a P-value of 0.370> 0.05. However, performance allowances had a positive and significant effect on work motivation, with a T-statistic value of 104.907> 1.96 and a P-value of 0.000 <0.05, indicating that performance allowances can improve employee motivation. Furthermore, work motivation has a positive and significant effect on employee performance, with a T-statistic value of 6.955 > 1.96 and a P-value of 0.000 < 0.05, indicating that increasing work motivation can improve employee performance. Work motivation also mediates the effect of performance allowances on employee performance, with a T-statistic value of 6.949 > 1.96 and a P-value of 0.000 < 0.05, indicating that performance allowances are more effective in improving performance when accompanied by high work motivation. These results provide insight that the combination of performance allowances and work motivation is an effective strategy in improving employee performance at the Public Works and Spatial Planning Agency of Asahan Regency. Employee performance at the Public Works and Spatial Planning Agency of Asahan Regency.]]>
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