Politics is one of the most common yet least studied phenomena in organizations. This study examines employees' perceptions of organizational politics in the public sector and suggests that it mediates the relationship between job congruence (e.g., person-organization fit and level of met-expectations) and employee performance (e.g., organizational citizenship behavior [OCB] and in-role performance). A survey was conducted among 303 individuals in public personnel from two local municipalities in the north of Israel (first survey). Supervisors completed an assessment of employees' OCB and in-role performance six months later (second survey). Path analysis using LISREL VIII was implemented to evaluate two alternative models, direct and indirect. Findings of the study show that the indirect model fits the data better than the direct model, and therefore supports a mediating effect of perceptions of organizational politics scale (POPS) on the relationship between job congruence and employee performance. Structural coefficients among the research variables promote the theory on the affect of job congruence and POPS on OCB and in-role behavior. The findings contribute both to the understanding of antecedents of POPS as well as to the exploration of some of its consequences. The paper concludes with several implications and suggestions for further inquiry into politics in public administration systems.