This study explored the recent trends of reform in American school teachers' salary system. After the history of teacher salary system, the current operational system of teacher salary, and two of the reform proposals in the past were synopsized, this study then discussed the recent reform proposals in the 1990's, and some examples of reform in several states were also reviewed. Based on the above exploration, this study made the following suggestions for Taiwan's policy-makers: (1)A non-governmental professional organization is needed for teacher certification. (2)The teachers should be paid on the basis of their competency. (3)The teachers should be given contingency pay when they are proved to have made progress on their professional development. (4)The schools should be given contingency pay when it is proved to have made progress on quality improvement. (5)When awarding schools for their progress in student achievement, the awards should be given to the school as a whole, not to nay single teacher or administrator. (6)When assessing teachers' performance, students' levels of achievement should be taken into consideration.