The Merit Pay System

The Merit Pay System is a performance-based pay structure that rewards employees with salary increases based on their individual work performance, skills, and contributions. Instead of giving everyone the same raise, it recognizes those who excel or take on additional responsibilities. This system aims to motivate employees to perform at higher levels, improve productivity, and align individual effort with organizational goals. It typically involves regular evaluations to assess performance, and raises are awarded accordingly, promoting fairness and encouraging continuous improvement.