Definition: Merit pay is a pay increase based on goals or achievements set by an employer, rather than a pay rate based on a union contract or a defined pay scale for a position. It is also known as pay for performance. Merit pay typically involves the supervisor meeting with the employee to discuss the employee's work and to award an increase or a bonus based on performance.
For more information visit the Department of Labor web site:
Last Paycheck
Also Known As: pay for performance
