A pay raise given to an employee according to a performance evaluation is referred to as:

A) merit raise
B) production bonus
C) commission
D) promotion
E) indirect compensation

A pay raise given to an employee based on their performance evaluation is commonly referred to as a merit raise. This is because the raise is given as a reward for the employee's merit, or the quality of their work. Options B, C, D, and E refer to other types of compensation that may or may not be based on performance evaluation.