noun
salary based on work evaluation; merit-based pay
A compensation system where pay is determined by an employee's skills, performance, or job evaluation rather than seniority.
この会社では職能給が導入されている。
This company has introduced a merit-based pay system.
年功序列 is the traditional seniority-based wage system, while 職能給 is based on individual performance and skills.
Compound of 職能 (job performance/skills) and 給 (pay/wages).