能力給(のうりょくきゅう)

A compound of 能力(のうりょく) (ability, competence) and 給(きゅう) (pay, salary). Describes a pay system that rewards individual performance and skills rather than tenure.

Common collocations

• 能力給(のうりょくきゅう)を導入(どうにゅう)する: to introduce merit pay
• 能力給(のうりょくきゅう)制度(せいど): merit pay system
• 能力給(のうりょくきゅう)に移行(いこう)する: to transition to merit pay
• 能力給(のうりょくきゅう)と年功給(ねんこうきゅう): merit pay and seniority pay

Similar words

• 年功給(ねんこうきゅう): seniority-based pay — the traditional Japanese system where pay increases with years of service
• 成果給(せいかきゅう): results-based pay — pay based specifically on output or results; slightly different from 能力給(のうりょくきゅう), which considers skills and abilities regardless of specific outcomes
• 歩合給(ぶあいきゅう): commission-based pay — pay calculated as a percentage of sales or transactions

Cultural note

Traditionally, Japanese companies relied on 年功序列(ねんこうじょれつ) (seniority-based promotion and pay). Since the 1990s, many companies have shifted toward 能力給(のうりょくきゅう) or 成果主義(せいかしゅぎ) (results-oriented management) to attract talent and improve competitiveness. This shift has been a major topic in Japanese business culture.