This review examines the intricate relationships between compensation, job satisfaction, and job performance among primary and secondary school teachers. Recognizing teachers' central role in student development, the study highlights how adequate financial remuneration significantly impacts job satisfaction, which in turn enhances performance. The review synthesizes findings from diverse theoretical frameworks and empirical studies, revealing that compensation, encompassing salary and benefits, is a crucial factor influencing teachers' perceptions of their professional value and well-being. Key theories such as Herzberg's Two-Factor Theory and the Job Characteristics Model provide insight into how appropriate compensation and supportive work environments foster job satisfaction and improved job performance. It underscores the implications for policymakers and educational administrators, advocating for the implementation of fair and competitive compensation packages, the provision of professional development opportunities, and the creation of supportive work environments. Addressing disparities between public and private schools, improving working conditions, and reducing teacher turnover are identified as essential strategies for enhancing teacher satisfaction and performance. By aligning compensation strategies with the goals of job satisfaction and optimal teacher performance, educational institutions can cultivate an environment where teachers are valued, motivated, and empowered, ultimately leading to improved educational outcomes and a more stable and productive educational system.