Reward system is a vital subsystem in personnel administration. Employees are employed in organization in order to contribute to the attainment of organizational goals. These employees expect adequate compensation and rewards for their contributions. The process of effectively managing any organization?s reward system is undoubtedly one of the most complex and problematic issues in Human resources management. Given the whole ambits of Human resource management, hardly is any issue more important, relevant and crucial to an employee than what he receives in exchange for his labour and services to the organization. Perhaps the most significant policy decisions that have to be made by those concerned with reward management are about levels of pay. But what determines an employees pay in the banking sector is unknown.