It is a well-documented fact that pay is a significant motivator. Notwithstanding, the notion that higher pay leads to higher satisfaction is not without debate. In common parlance, pay level satisfaction refers to an individual’s direct wage and salary compensation and is regarded as one of the most important job attributes for an individual. Therefore, it may be opined that pay satisfaction is a blend of both the monetary as well as non-monetary components, since pay, although by itself is a necessity, but not however, a sufficient condition for job engagement. Accordingly, in this endeavour, we shall seek to examine the dimensions and determinants of pay satisfaction among bank employees, under investigation. We shall also seek to provide a brief insight into the various ethical issues associated with administering pay in private banks, in addition to fathoming how this delicate area under discussion can be as administered in practice. The research is particularly unique, given that very limited studies have been conducted in this domain, especially in the Indian milieu, owing to its rather sensitive disposition and subjective understanding. Further, pay is deemed to be a major determinant of job satisfaction, thus making the study both relevant and purposeful. Our study is based on a meticulous survey of middle-level and top-level employees working in private banks situated in the city of Kolkata, India. A self-administered questionnaire with various items related to the study dimensions was employed to obtain feedback from the respondents. We have been able to identify the most important determinants governing pay in an organization. Further, the findings of our study clearly demonstrate a positive liaison between pay structures and levels of job satisfaction. Interview results further revealed that the respondents expressed discontentment with their salaries in relation to their workload, work-timings, career growth opportunities and organizational commitments. Now, it must be heeded that the study has been conducted on a limited geographical region (Kolkata, India) while being pillared on the perceptions of these bank employees, which are rarely flawless and hence sport the inherent risk of being imperfect. The study however, furnishes valuable insight into the dimensionalities and determinants of pay satisfaction, while seeking to proffer strategic guidelines to private banks in designing an effective pay structure that would be conducive to employee satisfaction, employee engagement and ensure their retention in the workplace. We have conceptualized pay satisfaction and have used Structural Equation Modelling (SEM) to analyse the data. Results showed favourable responses between all the constructs present in the model. Given that monetary and non-monetary aspects of pay both have a significant impact on pay satisfaction, as evidenced through the path diagram results, satisfaction with pay, in turn has a significant impact on job satisfaction, thereby triggering favourable responses with employee performance. It is thus evident that pay satisfaction, although a silent factor in case of several employees, is a necessary and critical consideration and point of reference when it comes to improving their productivity levels in the enterprise. The study shall help managers and students in understanding the nuances of pay as a critical component in the development of overall job satisfaction and employee performance.