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If employee is paid on the basis of number of jobs he or she is capable of doing or on the depth of his or her knowledge then it is :

  • A.Determining Grade
  • B.Pay Review System
  • C.Skill-based pay system
  • D.Job-based pay system

Answer: C

It is a skill-based pay system.

In skill-based (or knowledge-based) pay, employees are paid for the range of jobs they can perform and the depth of their knowledge, not for the job they happen to be doing. Pay rises as workers master new skills, which encourages flexibility and learning.

A job-based pay system does the opposite, fixing pay by the job's value through job evaluation. Determining grades and pay review are steps within a pay structure, not systems that pay for the person's skills.

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