The primary aim of the study is to find out the significant mean difference in pay satisfaction among personal characteristics of the school teachers as gender, age, family size, subjects for teaching, educational qualification, work place and work experience. Further, secondary objective is to suggest the government authoritative bodies to enhance pay satisfaction, which will give the long term value to the Northern Province, Sri Lanka in terms of social, economical and political development. The study employs independent samples t- test and one-way ANOVA (f-test) to test the operational hypotheses. The survey method used in this study is a questionnaire and a total of 360 usable responses were obtained using simple random sampling technique. Findings revealed that, there is a significant mean difference in pay satisfaction among family size, subjects for teaching, educational qualification and working experience.In contrast, we found that, there is no significant mean difference in pay satisfaction among gender, age level and work place. Further, we suggested that, When the drafts on policies in terms of the pay structure and administration of the school teachers especially in the northern part of the Sri Lanka are initiated or designed, governmental bodies like ministry of education should consider the differences in the level of pay satisfaction among personal characteristics. This study would hopefully benefit to the academicians, researchers, policy makers, and practitioners of Sri Lanka as well as other countries.