Cross-posting because your formulas so offend me.
Dividing by 5 and 20 isn't how you get 5% and 20%.
The formulas that would do what you're describing would be:
(Normal Drop Amount) + (Other Points)*.2 + (Points)*.2
(Normal Drop Amount) + (Health)*.05 + (Health)*.05
But your idea doesn't make sense. I think you should get LESS money for killing someone with a substantially lower level than you. I'd use this formula:
(Normal Amount) + (ln((Their Points)/(Your Points)))*x
Where x is a scaling factor because I don't know anything about the economy.
What this formula does is, if your level is higher than theirs, the natural log produces a negative number, multiplied by the scaling factor, and that gets subtracted from the normal amount. If your level is lower, you get a bigger bonus the higher the discrepancy between your levels. If they're exactly the same, you get a $1 bonus multiplied by the scaling factor. The last case is the one you'd use to balance the scaling factor I think.
For off-gang it would be the same thing:
(Normal Amount) + (ln((Their Health Level)/(Your Health Level)))*y
I changed the scaling factor from x to y to indicate that you should balance both of these equations on a case-by-case basis, as I assume Health Level and Gang Points are independent. I.E. killing someone with a higher health level might be harder than killing someone with higher gang points, so you might want to balance the formulas accordingly.
Also, because you're taking weird natural logs you're going to get weird decimal amounts. I don't know how gscript handles rounding, but you should be able to do something about that, or just truncate the decimals or whatever. Whether you want to round up or down is, again, something that would require more knowledge of Era than I have.
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The reason PKing pays less than other jobs is because it doesn't want to make you blow your brains out IRL.
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This is a good point, and I wanna say that with my formulas you could change the scaling factors to balance PK income so that you'd get just enough to cover your ammo cost, and it would also encourage you to spend most of your ammo engaging in more balanced fights, as you'd get less money than normal for killing weaker players.