THE EFFECT OF EDUCATION LEVEL ON EMPLOYEE INCOME: A CASE STUDY OF BANK SYARIAH INDONESIA (BSI) 2019-2024

Abstract

This study aims to analyze the effect of education level on employee income at Bank Syariah Indonesia (BSI) during the 2019-2024 period. Education is measured based on formal level (Diploma, Bachelor's, Master's, and Doctoral), while income is measured by basic salary and fixed allowances. The method used is multiple linear regression analysis with panel data involving a sample of 120 employees selected using purposive sampling. The results show that education level has a positive and statistically significant effect on employee income. Work experience and position/title variables also proved to significantly influence income. These findings support the human capital theory which states that investment in education can increase productivity and, ultimately, the compensation received by individuals. This study recommends that banking institutions such as BSI continue to design compensation structures that recognize and incentivize the educational qualifications of their employees.