The performance of Civil Servants (ASN) is a crucial factor in improving the quality of public services. However, the performance of employees at the Serang City Transportation Agency has not yet reached its optimal level, making it necessary to examine the influence of employee allowances, work environment, and work ethic on employee performance. This study aims to analyze the effects of employee allowances and the work environment on employee performance, their effects on work ethic, the effect of work ethic on employee performance, and the mediating role of work ethic at the Serang City Transportation Agency. This research employed a quantitative survey approach. The population consisted of 80 civil servants, all of whom were selected as the sample using a saturated sampling technique. Data were collected through a five-point Likert scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS software. The findings indicate that all direct relationships are positive and significant (p < 0.05). Work ethic significantly mediates the effects of employee allowances and the work environment on employee performance. The coefficient of determination (R² = 0.666) shows that 66.6% of employee performance is explained by the proposed model. The study concludes that all hypotheses are supported. Employee allowances and the work environment improve employee performance directly and indirectly through work ethic. Therefore, enhancing employee welfare, improving the work environment, and strengthening work ethic should become strategic priorities for the Serang City Transportation Agency
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