A reward structure compensates employees with higher base pay or incremental wage increases as they acquire, master, and demonstrate additional job-related skills and capabilities. Which pay scheme is being described?  

In Strategic Compensation Management, organizations structure pay around different criteria—such as job value, individual performance, operational output, or personal capabilities:   Skill-based pay (also known as person-based or competency-based pay) links base compensation directly to the depth, breadth, and mastery of work-related skills an employee acquires and demonstrates. Instead of tying compensation solely to job title or position hierarchy, it incentivizes continuous personal learning, cross-functional flexibility, and capability expansion.