Yeah, there’s no problem with a meritocracy as long as the top and the bottom of the gradient aren’t (literally can’t pay bills -> more money than you could ever spend.)
Like in no sane world would people willingly become surgeons for the same pay as a sanitation worker, that’s just fucking stupid. Why spend a decade going through school to be a doctor when you could just go pick up trash and make the same money? We have to have some kind of variation in pay scale or society wouldnt function.
Like you said, how much difference between the top and the bottom definitely doesn’t have to be what it is.