Levelling and Experience
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The game uses a fairly standard experience system which sees you gain experience for doing almost everything in the game from crafting to fighting to gathering.

To level up you have to gain a set amount of experience once you have met or passed the experience needed to level up you will gain a level and the experience used to make the level is deducted from your current total (effectively putting you back to 0 again). As you level up the experience required to get the next level increases but you will also notice the amount of experience you gain from performing actions increases.

When you level up you gain various stats depending on your class and your skill max limit goes up by 5pts.

Skill Max Formula
Skill Max = Level * 5

i.e. At level 10 your skill max is 50

You can not raise any skill past your skill max, but you can use items to get past your max.

Additional Information
Your experience is displayed in the top left corner of the game window just below your level so you will have a visual indicator of how far you have to go to level up at all times.

If you can not see your experience bar below your level it is likely due to one of these reasons: