The formula to calculate the Bonus Factor is:
\[ \text{BF} = \frac{\text{BE}}{\text{BS}} \]
Where:
The Bonus Factor is a measure of the bonus earned by an employee relative to their base salary. It is calculated by dividing the bonus earned by the base salary. This metric helps in understanding the proportion of the bonus in relation to the base salary.
Example 1:
Using the formula:
\[ \text{BF} = \frac{5000}{50000} = 0.10 \]
Example 2:
Using the formula:
\[ \text{BF} = \frac{7500}{60000} = 0.125 \]
