The paper reports on existing incentive structures in a sample of government and private schools in Delhi and elicits teachers’ perspectives on factors which motivate them. It is found that performance-related pay and promotions are important monetary incentives for teachers. Recognition, regular evaluation and monitoring and contractual based employment are found to be important non-monetary incentives. Having a large class size, having to teach subjects outside of a teacher’s expertise and performing clerical duties are found to be some significant disincentives for teachers.