What term denotes an increase in wages for meeting or exceeding performance goals?

What term denotes an increase in wages for meeting or exceeding performance goals?

• A. Minimum wage
• B. Mean
• C. Mediation
• D. Merit Increase

Answer: (D)

Merit increase refers to a wage rise given for meeting or exceeding performance goals. In performance-based pay systems, employees receive compensation adjustments tied to how well they perform during a review period. This concept is distinct from minimum wage, which is the legally mandated lowest pay rate; from the mean, a statistical average not related to pay decisions; and from mediation, a process used to resolve disputes rather than adjust wages. A merit increase is usually based on performance ratings and can be a set percentage or amount intended to reward high performance and encourage continued excellence.

Merit increase refers to a wage rise given for meeting or exceeding performance goals. In performance-based pay systems, employees receive compensation adjustments tied to how well they perform during a review period. This concept is distinct from minimum wage, which is the legally mandated lowest pay rate; from the mean, a statistical average not related to pay decisions; and from mediation, a process used to resolve disputes rather than adjust wages. A merit increase is usually based on performance ratings and can be a set percentage or amount intended to reward high performance and encourage continued excellence.