Retention Bonus Calculator

Calculate Retention Bonus



Formula

To calculate the Retention Bonus (\(RB\)):

\[ RB = AS \times \frac{RBR}{100} \]

Where:

What is a Retention Bonus?

A retention bonus is a financial incentive offered to employees to keep them from leaving the company. It is often used during times of organizational change or when there is a high demand for the employee's skills in the market. The bonus is calculated as a percentage of the employee's annual salary.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ RB = 100,000 \times \frac{10}{100} = 100,000 \times 0.1 = 10,000 \]

The Retention Bonus is $10,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ RB = 75,000 \times \frac{5}{100} = 75,000 \times 0.05 = 3,750 \]

The Retention Bonus is $3,750.