Definition

Noun: - Extra compensation based on performance: A system of additional salary or wages given to an employee as a reward for their individual work quality, achievements, or merit, rather than for seniority or across-the-board raises. It is often used in educational and professional contexts.

Usage

"Merit pay" is used as a non-count noun to describe the concept or system of performance-based compensation. It typically functions as the object of a verb or follows a preposition. - The school district is considering implementing merit pay for its teachers. - A bonus structure is different from a merit pay system. - She received an increase due to merit pay.

Examples

• The debate over merit pay for educators continues in many countries.
• His excellent project management earned him merit pay this year.
• The union negotiated the terms of the new merit pay plan.

Advanced Usage

• "to be on/under a merit pay system": to be subject to a compensation structure where pay is tied to performance evaluation.
  • All sales staff are on a merit pay system.
• "merit-pay increase/award" (compound adjective + noun): describes the specific raise or bonus given.
  • She received a significant merit-pay increase after her annual review.

Variants and Related Words

• Performance pay (n): A near-synonym often used interchangeably with "merit pay," though it may have a broader application beyond individual merit to include team or company performance metrics.
• Pay for performance (n phrase): A descriptive phrase for the same concept.
• Merit increase (n): A specific instance of a raise granted under a merit pay system.

Synonyms

• Performance-based pay
• Incentive pay (though this can more specifically refer to bonuses for meeting specific targets)

Related Phrases

• Tie pay to performance: A verb phrase describing the action of linking compensation to job results.
  • The company's goal is to tie pay more closely to performance.

Noun

1. extra pay awarded to an employee on the basis of merit (especially to school teachers)