Among all the resources of an educational institution, teachers are unquestionably the most important. Motivation plays a pivotal role in increasing the level of teacher’s job satisfaction. Satisfied teachers in turn can help in improving the performance of an educational institution. The objective of this study is to analyze the effects of intrinsic and extrinsic motivational factors on teacher job satisfaction in public sector degree colleges of Punjab, Pakistan. Data was collected from 406 respondents from public sector colleges in the Punjab. SEM was used to test the hypotheses using AMOS package. Results revealed that there is significant positive relationship between intrinsic motivational factors and teacher job satisfaction. Similarly, statistically significant positive relationship is also found between extrinsic motivational factors and teacher job satisfaction. However, it is found that teacher job satisfaction in largely caused by intrinsic motivational factors as compare to extrinsic motivational factors.