This thesis investigates the dynamics of performance-based payment systems for teachers in Guayaquil and Santiago de Chile. This payment system is considered to positively affect the performance of teachers and education quality. The main objective of this research paper was to analyze the existing educational systems in Santiago de Chile, identify potential areas for improvement, and explore how it can be applied to Guayaquil. The theories suggested that cultural, educational, and economic settings all have an impact on how effective these systems are. The methodology employed a mixed-method approach, combining quantitative data analysis with qualitative insights from interviews with teachers. In Guayaquil, this payment system does not exist, but a program has been made between 2008-2012. However, it showed no real results (it eventually got canceled midway through). In Santiago de Chile, the PBP has worked effectively and is still being implemented nowadays. Regarding this city, data was collected from studies of the story behind this practice and why it works. We conclude that the PBP can give a positive impact in the performance of teachers and education quality in Guayaquil. We suggest adding value to this payment system for its implementation in Guayaquil.