There are several ways that can be done to improve employee performance, among others, by motivating employees and improving work discipline. Increased motivation and discipline can be pursued by the provision of incentive. This study aims to analyze the influence of incentive on Andalas University's employee motivation and discipline and analyze their perceptions on that allowance. This research was conducted by survey using questionnaire toward 78 educational staffs with civil servant status at rectorate of Andalas University. Data were analyzed quantitatively using descriptive analysis and Structural Equation Modeling (SEM). The results showed that the educational staff perceives that the incentive is feasible, allowances are able to increase productivity and improve welfare. However, they still feel that the application of incentive is not fair yet because it is not based on the actual workload. Based on statistical test, it was found that the incentive had a statistically significant and positive influence on work motivation and employee discipline.