1.
merit pay; ability-based pay; performance-based salary
A compensation system in which an employee's pay is determined by their skills, abilities, or performance rather than by seniority or a fixed scale.
この会社は能力給を導入している。
This company has introduced merit pay.
能力給なら若い社員にもチャンスがある。
With merit pay, even young employees have a chance.
年功序列から能力給への移行が進んでいる。
The shift from seniority-based pay to merit-based pay is progressing.
A compound of 能力 (ability, competence) and 給 (pay, salary). Describes a pay system that rewards individual performance and skills rather than tenure.
COMMON COLLOCATIONS:
- 能力給を導入する: to introduce merit pay
- 能力給制度: merit pay system
- 能力給に移行する: to transition to merit pay
- 能力給と年功給: merit pay and seniority pay
SIMILAR WORDS:
- 年功給: seniority-based pay — the traditional Japanese system where pay increases with years of service
- 成果給: results-based pay — pay based specifically on output or results; slightly different from 能力給, which considers skills and abilities regardless of specific outcomes
- 歩合給: commission-based pay — pay calculated as a percentage of sales or transactions
CULTURAL NOTE:
Traditionally, Japanese companies relied on 年功序列 (seniority-based promotion and pay). Since the 1990s, many companies have shifted toward 能力給 or 成果主義 (results-oriented management) to attract talent and improve competitiveness. This shift has been a major topic in Japanese business culture.