This study examined the effect of compensation schemes on academic staff performance in Federal Polytechnic Nasarawa. Specifically, it investigated the effect of special allowances and part-time emoluments (independent variable) on academic staff performance (dependent variable) of the institution. The descriptive survey research design was adopted for the study. The population comprises of the 485 academic staff of the institution from where a total of seventy nine (79) samples of academic staff were selected across six (6) faculties using stratified sampling technique. Questionnaire was used to gather data from the respondent. The reliability of the questionnaire was tested using Cronbach- alpha coefficient and the test yielded the alpha coefficient of 0.85 and 0.82 for special allowances and part-time emoluments respectively.Descriptive statistics was used to present the data while multiple regression analysis was carried out to examine the extent to which the independent variable affects the dependent variable and the finding reveals thatboth special allowances and part-time emoluments have significant positive effect on academic staff performance in Federal Polytechnic Nasarawa. The researcher recommends that; the management of the institution should continue to enhance employees’ compensation schemes (both special allowances and part-time emoluments).