The main purpose of the study was to assess the teaching staff salmy and benefit scheme oj"rnsecondary schools of Eastern Zone of Tigray Region, to determine to what extent the system isrnmarket-driven and to investigate to what extent it is built on the goals of secondmy schools of thernzone. A descriptive survey research method was employed to conduct the study. Two hundredrnMenty two copies of questionnaires were distributed among randomly selected teachers andrnteachers' development program officials who were taken on availability sampling to gather bothrnqualitative and quantitative data on their al/itude towards the compensation package. Twornhundred sixteen of them were returned. In addition teacher development program officials werernalso interviewed. The result empirical analysis provided was based on survey responses andrnresults were displayed using tables. The results of the survey responses indicates that the payrnsystem of the Minis"y of Education is no/ or some what competitive with the local market and itrndoes nol enable the secondmy schools to attract, recl'llit, motivate and retain quality teachers. Itrnalso reveals that the salmy and benefits the teacher receives is unfair, inadequate andrnunsatisfactOlY resulting in turnover and working at level considerably below their capacity inrnsecondmy schools. The study also shows that communication about the salmy and benefits arerninexistent in the secondmy schools. Without factual information about pay and benefit issues, itrnwill be subject to speculation and misinterpretation and this may lead to reduced tl'llS/.rnCommunicating teachers about pay and benefit issues are received to be the primmy task forrn.lil/ure organizational success. Finally, it is recommendedfor Minishy of Education, RegionalrnEducation Bureau, Woreda Education Office and the Secondary Schools to undertake arncomprehensive teacher's compensation mechanism which represents a strategy for recruiting,rnal/!'Octing. retaining and supporting high quality teachers. In addition, the compensation systemrnshould be redesigned to enable the secondmy schools to encourage and reward peakrnperformance and the acquisition of new skills and knowledge.