<![CDATA[Local government incentive programs provide financial support to neighborhood administrators, yet recipients may interpret these incentives differently according to their experiences, needs, and social responsibilities. This article examines how Neighborhood Association (RT) and Community Association (RW) heads in Pepe Village, Sedati District, Sidoarjo Regency, perceive the local government incentive program and how these perceptions relate to their work motivation and social action orientations. The research employs a descriptive qualitative approach involving five informants, consisting of three RT heads and two RW heads, selected through purposive sampling. Data were collected through observation, semi-structured in-depth interviews, and documentation, then analyzed using the Miles and Huberman model and interpreted through Max Weber’s social action theory. The findings reveal three principal perceptions of incentives: personal income, neighborhood operational funds, and recognition of community service. These interpretations shape different motivational responses. While some informants demonstrate stronger motivation through financial support and increased capacity to address community needs, others maintain their commitment primarily through religious values, social responsibility, and intrinsic motivation. The program supports neighborhood administration and community activities, but its implementation faces challenges related to insufficient financial amounts and uneven policy dissemination. The findings highlight the importance of clarifying the purpose of incentives and aligning policy support with the operational needs and responsibilities of RT/RW administrators.]]>
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