The study aimed at the effect of indirect financial rewards on performance of health workers at Kiruddu hospital and it aimed at filling the knowledge gaps, providing empirical data for management on the cost-effectiveness and sustainability of continued investment in the program, this proposed study aimed at conducting a mixed methods outcomes evaluation to determine the effect of indirect financial rewards on objective performance measures and subjective perceptions of motivation among health worker subgroups at Kiruddu Hospital one-year postimplementation. A mixed methods evaluative research design was employed to comprehensively assess the effect of the recently introduced merit-based indirect financial reward program targeting health workers at Kiruddu National Referral Hospital. This involved concurrently collecting both quantitative and qualitative data, then integrating the findings to answer the research question. Additionally, a cross-sectional survey was administered to a sample of 69 staff randomly selected from across professional cadres using a structured questionnaire to determine self-reported levels of motivation, job satisfaction, turnover intentions after experience with the rewards. From the findings, Correlation Coefficient for indirect financial rewards and performance of health workers at Kiruddu Hospital was r = 0.736**, which was significantly positive with probability value (p = 0.000) that was less than α = 0.01 level of significance showing a positive relationship between indirect financial rewards and performance of health workers at the 1% level of significance. The correlation results indicated a significant positive relationship between indirect financial rewards and performance of health workers at Kiruddu Hospital. The statistics indicated that indirect financial rewards were positively and statistically associated with performance of health workers in Kiruddu Hospital. From the recommendations, there should be need for the top leadership of Kiruddu Hospital and the Ministry of Health to review the existing direct financial reward systems. This can be done by benchmarking with private hospitals and other Government Hospitals in the region.