This study aims to analyze the effect of employee additional income (TPP) on employee performance with employee competence as a mediating variable at the Regional Secretariat of Mojokerto City during the COVID-19 pandemic. This study uses a quantitative approach with an explanatory method. Data were collected through a questionnaire distributed to 55 employees selected using proportional random sampling. Data analysis was conducted using multiple linear regression and path analysis to examine the relationships between variables. The results of the study indicate that TPP has a positive and significant effect on employee performance. Additionally, TPP also positively influences employee competence, which ultimately improves employee performance. Employee competence was found to mediate the relationship between TPP and employee performance, so that the increase in TPP not only has a direct impact on employee performance but also strengthens employee competence, contributing to overall performance improvement. This study also shows that other supporting factors, such as leadership and organizational culture, play an equally important role in improving employee performance. The conclusion of this study emphasizes that providing TPP can be an effective strategy to improve employee performance, especially when supported by continuous competency development programs and efforts to improve managerial quality.