Meritocracy (merit, from Latin mereō, and -cracy, from Ancient Greek κράτος kratos 'strength, power') is the notion of a political system in which economic goods or political power are vested in individual people based on ability and talent, rather than wealth or social class. Advancement in such a system is based on performance, as measured through examination or demonstrated achievement. Although the concept of meritocracy has existed for centuries, the first known use of the term was by sociologist Alan Fox in the journal Socialist Commentary in 1956. It was then popularized by sociologist Michael Dunlop Young, who used the term in his dystopian political and satirical book The Rise of the Meritocracy in 1958. While the word was coined and popularized as a pejorative, its usage has ameliorated. Today, the term is often utilised to refer to social systems in which personal advancement and success primarily reflect an individual's capabilities and merits, frequently seen as equality of opportunity. It thus challenges forms of nepotism or hereditary aristocracy.

The "most common definition of meritocracy conceptualizes merit in terms of tested competency and ability, and most likely, as measured by IQ or standardized achievement tests". In government and other administrative systems, "meritocracy" refers to a system under which advancement within the system turns on "merits", like performance, intelligence, credentials, and education. These are often determined through evaluations or examinations.^{[page needed]}

In a more general sense, meritocracy can refer to any form of evaluation based on achievement. Like "utilitarian" and "pragmatic", the word "meritocratic" has also developed a broader connotation, and is sometimes used to refer to any government run by "a ruling or influential class of educated or able people".

This is in contrast to the original, condemnatory use of the term in 1958 by Michael Dunlop Young in his work The Rise of the Meritocracy, who was satirizing the ostensibly merit-based Tripartite System of education practiced in the United Kingdom at the time; he claimed that, in the Tripartite System, "merit is equated with intelligence-plus-effort, its possessors are identified at an early age and selected for appropriate intensive education, and there is an obsession with quantification, test-scoring, and qualifications".

Meritocracy in its wider sense, may be any general act of judgment upon the basis of various demonstrated merits; such acts frequently are described in sociology and psychology.

In rhetoric, the demonstration of one's merit regarding mastery of a particular subject is an essential task most directly related to the Aristotelian term Ethos. The equivalent Aristotelian conception of meritocracy is based upon aristocratic or oligarchic structures, rather than in the context of the modern state.

To this day, the origin of the term meritocracy is widely attributed to the British sociologist Michael Young, who used it pejoratively in his book The Rise of the Meritocracy. For Young, merit is defined as intelligence plus effort. As a result, he portrays a fictional meritocratic society as a dystopia, in which social stratification is based solely on intelligence and individual merit, which creates a highly competitive and unequal society.

Despite this initial negative connotation, the term meritocracy has gained some positive recognition more recently. As such, it is nowadays applied to merit-based systems of status and reward allocation in distinction to aristocratic or class-based systems, in which inherited factors are the primary determinant for the position of an individual in society.