Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee's base pay.

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Alejandra Castillo · Accepted Answer

Final Answer : True, Explanation :  Merit pay plans are often criticized because the merit increases, which are typically a percentage of the employee's current salary, may not be substantial enough to significantly raise the employee's base pay, especially in the context of inflation or when compared to market rate increases.

Merit pay plans have been criticized because the merit increase may not be sufficient to raise the employee's base pay.

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