The pay which is awarded to the employees on the basis of the relative value of their contributions to the organization is known as merit-based pay. This pay is a performance-based reward for individuals.
The employees of an organization are the human resources who play an important role in the growth of the organization. The employees are the people who work on the ground and can improve the results and impact the organization leaves on their clients.
So, Merit-based pay refers to compensation given to employees based on the relative worth of their contributions to the company.
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