Performance bonuses,like merit pay becomes part of base pay.

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Performance bonuses, including merit pay, are typically separate from base pay and are not automatically included in an individual's ongoing salary or wage. Instead, they are typically awarded based on performance evaluations or other criteria and may vary from one year to the next. However, some organizations may choose to include bonuses or other incentive payments as part of an individual's base pay if they believe that doing so will help to motivate and retain talented employees over time.

Performance Bonuses,like Merit Pay Becomes Part of Base Pay