Efforts to improve performance are always carried out by the company so that its objectives in running the business can be achieved. This study was conducted to determine the effect of reward and punishment on employee performance by mediating work discipline at the village credit institution in the village of Pekraman Ketewel. This study is a census study because the total population of 32 people will be used as a sample. The data analysis process will be carried out using the path analysis method. The results of the analysis show that reward and punishment have direct and indirect effects on employee performance by mediating work discipline at village credit institutions in Pekraman Ketewel village. The suggestion of this research is for LPD to optimize performance by looking at the factors of reward, punishment, and work discipline
