The aim of this paper was to study the impact of intrinsic rewards on loyalty of employees working in restaurants situated in district Swat. This cross-sectional study was quantitative in nature and used non-probability sampling of 202 employees from restaurants. The self-administered questionnaire included demographic section, the intrinsic rewards and Swat Loyalty Scale (SLS). The data was analysed by applying Pearson Correlation and Regression. The results of the study confirmed a positive and significant relationship between intrinsic rewards and employee loyalty of employees working in restaurants. This study contributes to the employee loyalty Literature and, more specifically, to the relationship between intrinsic rewards and loyalty in the restaurants sector of district Swat. The outcome of the study draws the attention of decision makers to the importance of intrinsic rewards and its impact on the employee loyalty.

Keywords: Intrinsic Rewards, Employee Loyalty, Swat Loyalty Scale, Restaurants.