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Assigning a bonus to a user allows you to increase their base hourly rate, but keep them on the relevant position and hourly rate. For example, John might be assigned to a level 1, 18+ rate. You can now leave him assigned to that award rate, and increase his base rate by using a bonus amount. All the penalties will now be calculated based on the award rate + bonus amount.
Depending on the circumstances, some organisations may choose to adjust the pay rate of some users using this feature.