The purpose of this study was to examine the routines of performance related pay systems in two Swedish municipal upper secondary schools. A second purpose was to examine what data was included for evaluation of a co-worker’s performance and how a principal collects data. The purpose was also to examine a principal and teachers´ view of performance related pay systems and if it was possible to note an agreement. Principals have been interviewed and teachers have answered a questionnaire to fulfil the purposes of this study.

The study shows that the municipality had a good routine that included individual discussions with co-workers about their salary and had fixed municipal criteria. Data for evaluation were these fixed criteria together with unspoken criteria. Principals collected data verbally. It in-creases the risk of subjective evaluation, which increases insecurity and inefficiency of per-formance related pay systems. The teachers gave an insecure and divided image of perform-ance related pay systems. Increased dialogue and defined criteria for the teachers’ salary are needed to improve the image.