Exploring the Mediating Effect of Job Satisfaction of Teacher Salary and Loyalty on Teacher Performance in Muhammadiyah Schools in Samarinda

Objectives: This study examines the mediating effect of job satisfaction on the relationship between teacher salary and loyalty in enhancing teacher performance in Muhammadiyah schools in Samarinda. The research aligns with Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth). Theoretical Framework: The study is grounded in Herzberg’s Two-Factor Theory, emphasizing the significance of intrinsic and extrinsic factors in job satisfaction, and the Social Exchange Theory, which explains how organizational support fosters loyalty and performance. Method: A quantitative approach was employed, with data collected from 208 teachers in 19 Muhammadiyah schools through structured questionnaires. Smart-PLS was utilized to test the hypothesized relationships and assess the mediating role of job satisfaction. Results and Discussion: The findings demonstrate that job satisfaction insignificantly mediates the relationship between teacher salary, but significantly mediates loyalty to teacher performance. The salaries positively influence job satisfaction, which, in turn, enhances loyalty and performance. The results underscore the pivotal role of fair compensation and supportive environments in improving teacher performance. Research Implications: The study provides actionable insights for educational policymakers and administrators, emphasising the need for competitive salaries and loyalty-building strategies to enhance teacher performance and achieve sustainable educational development. Originality/Value: This research contributes to the limited empirical literature on teacher performance in faith-based schools, particularly in Indonesia, while establishing a linkage to SDGs. It highlights the intersection of equitable employment practices and sustainable education goals.