Melee Damage

Formula
Melee damage is affected by 4 factors: Weapon Base Damage, Weapon Damage Quality Multiplier, Survivor Melee Damage Multiplier and Server Settings: Player Damage.

Melee Damage = WBD * WDQM * SMDM * PD

For example, a survivor with 200% Melee Damage wielding a 150% damage sword on a server has 2.0 Player Damage setting will do 540 damage:

540 = 90 * 150% * 200% * 2

Increasing
Putting a point into Melee Damage for players increases their damage modifier by 5%.