The aim is to motivate students
The head teacher of St George Community College in Bristol hopes the children will respond well to the offer, while critics say it is a misuse of public funds.
This school is in the process of becoming a city academy, funded partly by local businesses as well as the government.
The move will give it independence from council control, so it can set its own rules.
Ruby Jones is sitting 11 GCSEs in June. She will be set targets in each subject, and for each one she meets, she will get £10.
If she achieves all her targets, she will get £15 per subject.
She then has a chance to make an extra £150 if she decides to come back in September and take her A-levels.
"Obviously it's a bonus but at the end of the day when I get a job from getting my qualifications I'll be earning more than that," she said.
'Performance related'
Another pupil said: "It'll motivate some children. I really like money, that's why I'm going to try harder."
The scheme is not a new idea. It has been tried before in various forms in other schools that have been struggling to raise achievement.
But what makes the St George's move more controversial is the use of the school's budget rather than specially-raised funds.
Nigel de Gruchy, leader of the NASUWT teachers' union, said: "I think it sends the wrong messages and I think it's a misuse of public funds.
"It's a very unfortunate development - it's all very well for one or two schools to do it but what happens if every school wants to?
"The money would be better spent on other things in education.
"Performance-related pay is controversial enough for adults without bringing it to pupils."
Head teacher at the community school, Ray Priest, said: "We thought about young people when they pass exams.
"They get mum or dad to buy them a bike or stereo system.
"It's rewarding achievement. It's rewarding something they've really earned and we felt if we did that it would be saying to our students 'well done, congratulations on your achievement'."