Executive Position 1CEO and Director

Scope of Responsibilities

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- Chief Executive Officer and Board Member - Priority Banking and Wealth Management - HR Development - Overseas Operations Co-Chairman Executive Committees - Human Resources and Quality Assurance - Group Marketing - Strategic Planning - Branch Banking & SME - Consumer Finance Chief Operating Officer - Operations - Commercial Banking - Information Technology - SBP Compliance Chief Compliance Officer - Internal/External Audit Compliance - Coordinator SBP Inspection - Financial Control and Budgeting - Central Payment and Expenditure Control - Taxation and Excise Chief Financial Officer - Monitoring and Automation - Treasury Settlement - Nostro & HO Reconciliations - Establishment & Administration - Establishment & Administration Executive-in-Charge Estab & Admin - Procurement of Hardware Division - Engineering, Maintenance & Security - Printing & Stationery - Audit & Inspection reporting to the Board through the Boards Audit Group Head Audit & Inspection Committee - Fraud & Investigation Unit - Branch Network of Conventional Banking - Central/Regional/Area Offices Group Head Branch Banking & SME - Rural Finance - SME - Branch Expansion - Commercial Banking Group Head Commercial Banking - Management of Commercial Credits - Commercial Deposits - Cards - Mortgages Group Head Consumer Finance - Autos - Personal Loans Group Head Corporate & Investment - Corporate Banking Banking - Investment Banking - Credit Group Head Credit & Collections - Equity Management Portfolio - Credit Monitoring - Monitoring of entire Credit Portfolio of the Bank - CIB General Manager Credit Monitoring - SBP Foreign Exchange Returns - SBP Financial Returns - Central/Regional/Area Offices Islamic Banking Group Head Islamic Banking - Branch Network of Islamic Banking - Export Refinance - Central Test Keys / SWIFT. - Centralized Account Opening - Centralized Trade Finance Group Head Operations - Call Centre - Credit Administration Department - Temenos Bank Transformation Project - Centralized Clearing Department Group Head Priority Banking & Wealth - Priority Banking Management - Wealth Management Group Head Training & Development - Training & Development Group Head Treasury & Financial - International Banking

Institution

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General Manager General Manager General Manager General Manager General Manager Division

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- Treasury - Rupee Traveller Cheques - MoneyGram - UAE Representative Office - Afghanistan Operations Overseas Operations - Bangladesh Operations - OBU Bahrain Operations - Company Secretary Legal Affairs Division - Legal Department - Human Resources HR & QAand D - Quality Assurance - Internal Communication -Procurement of Software IT Division - Entire Operations of Banking Package - Electronic Mail & Web Management -Treasury Risk Risk Management - Credit Risk - Operational Risk - I.T. Security & MIS

CHAPTER - 9: SALARY, ALLOWANCES & BENEFITS FOR PAKISTAN BASED STAFF Back to Manual Index 9.1 Introduction Staff monthly salary is disbursed before the end of each month usually on 26th/27th of the month. Salary & allowances of each employee is a confidential matter. Those officials, who due to reasons of procedural expediency, are in the knowledge of salary particulars of their colleagues, must treat such information as confidential. Their failure to do so may result in disciplinary proceedings against them. In order to disburse salary on time, branches are advised to ensure that all salary amendments must reach HRD latest by 20th of every month as per. 9.2 Advance against Salary Employees in need of funds for an emergency may be allowed advance against salary for the current month to be adjusted in full on disbursement of salary. Since this facility is only meant for emergencies, no staff member may be allowed to make a habit for applying for such advance. Approval shall be obtained from the Departmental Head/ Branch Manager and forwarded to HRD. As a matter of policy, a staff member may avail this facility only twice during a calendar year under the following conditions :9.2.1- If the staff member is proceeding on leave and next payday falls during vacation period. 9.2.2- In case of emergency. 9.3 Effect of Leave without Pay on Salary Salary deduction on account of leave without pay will apply to the entire salary package of the concerned employee, including allowances and perks. Moreover, weekends and public holidays falling during this period will also be considered as part of leave without pay.

9.4

Salary & Allowances for Officers & Executives (Minimum starting pay) 9.4.1- Salary and allowances of officers and executives of the Bank are as follows: (All Amounts in PKR) Telep. Cell* Gross Resid* 8,000 12,000 15,001 25,000 40,001

Range I II III IV V

Basic 5,000 7,500 9,334 14,000 23,834

House 2,000 3,000 3,734 5,600 9,534

Util. 500 750 933 1400 2383

Conv. 500 750 1,000 1,250 1,500

Drivers All. -

Furnit. All. 2,750 2,750

VI VII VIII IX

31,500 35,667 85,667 181,334

12,600 14,267 34,267 72,534

3150 3567 8567 18133

7,000 8,000 9,000

2,750 4,500 6,500 9,500

3,000 4,000 5,500

2,000 3,000 4,000

50,000 70,001 150,001 300,001

* Area Managers/ Branch Managers below Range VII are eligible for Telephone Residence allowance upto Rs.3,000/- per month * Area Managers/ Branch Managers below Range VIII are eligible for Cell Phone Allowance upto Rs.3,000/- per month * BM transferred as Team Leader at any Group will continue to draw Title, Tel. Residence and Cell Phone Allowance permissible to BM * Team Leaders ( Range IV, V, VI and VII) are entitled for monthly Cell Phone Allowance of Rs. 3,000/9.5 Salary & Allowances for Non-Officers (Minimum starting pay)

(All Amounts in PKR) Cadre Basic House Util. Conv. Gross Supervisory Secretary / Protocol / Any supervisory 5,000 2,000 500 400 7,900 Position Clerical Assistant / Cashier / Typist / Technical 4,800 1,920 480 300 7,500 Staff (Maintenance) Non-Clerical Peon / Tea / Office Boy 4,000* 1,600 400 200 6,200 Driver / Guard / Non-Technical Staff (Maintenance) / Sweeper / Cleaner *This Basic salary is inclusive of Cost of living allowance of Rs 300 as per the S.R.O. 606 (I)/98 dated June 6, 1998. 9.5.1. Reimbursement Limits (for Officers and Executives) (Amounts signify maximum limits payable on a reimbursement basis). Salary Range I II III IV V VI VII VIII IX Mobile Phone Limit No No No*** No*** No*** No*** 2000*** 3000*** 4000*** News paper No No No No No No *** Yes Yes Magazine No No No No No No *** Yes Yes

*** A small limit may be allowed on functional basis, to be advised through HRD. Based on functional requirement, cellular phone limit for following will be as under :- Branch Managers/ Area Managers (Below range VIII) Rs.3,000/- p.m. Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned DGM, HRD for obtaining necessary approval & record keeping. **** Allowed only for Branch Managers and Senior Management at HO: One mass circulation & a business paper ^ Club Member-ship Group Heads and General Managers will be eligible to have one corporate club membership at their place of posting that includes joining fee of one approved club plus fixed monthly fees for self and family.

9.5.2. Job cum Grade Fuel Entitlement Job related fuel entitlement of various positions are as follows: (Staff will avail the higher facility out of Grade and Job Fuel Entitlement) Sr# 1 2 Functional Title/ Range Group Heads General Managers EI / CFO (Range IX) Regional Managers (VIII & IX) Divisional Heads RMs (Below VIII) DGM/ Reg. Heads/ Head SME/ Prod Head Area/Zonal / Branch Manager (Range VIII) Product Head/AM/ ZM ( Below VIII ) BM (Range VII) Range VII Officers BM (Below VII) Team Leaders (Range IV, V & VI) Range VI Officers Fuel Entitlement p.m. (Litres) 700 500

300

4 5

250 200

9.6

Accommodation At the discretion of the Banks Management, furnished or unfurnished accommodation upto reasonable rental value may be provided to senior officers/ Branch Managers, transferred from their permanent locations to fulfill the Banks requirements, with the prior approval from HRD. Other staff members when transferred out of city of the permanent residence to suit the Banks requirements may be entitled to the following additional allowance (this needs prior approval from HRD before transfer is implemented). Officers transferred to new location at their own request will not be entitled for this allowance) :(All Amounts in PKR) Unmarried Married Officers Officers 6000 4000 8000 6000 10000 8000

Salary Range I-III IV-VI VII

(In specific circumstances, for managerial assignments, CEO may approve higher limits) 9.7 Fuel Allowance At the discretion of the management, officers posted in business units such as Consumer Finance, Agriculture Finance, Credit Marketing, Quality Assurance Officers, are allowed payment of Fuel Allowance ranging between 50 ltrs. to 200 ltrs. (Based on their functional requirements if recommended by concerned Heads of Division / Departments). Such approvals are obtained from HRD by concerned Group. 9.8 Cell Phone Facility Those who are below salary range VII but due to their functional requirement need mobile phone facility, will be eligible for reimbursement of upto maximum Rs.1,500/- per month subject to maintenance of their own mobile phone set. This facility will be available based on recommendations from GH/ GM/ Divisional Head and approval from HRD. 9.9 Title Allowance Title Allowance may be paid to following position holders till such time they hold these positions. Allowance in PKR per month 35,000 25,000 20,000 15,000

Officer Position Group Head/ General Manager/ EI Regional Manager DGM/ Regional Head/ Product Head Area Managers

Branch Managers Chief Cashiers Tellers/Cash Officers Asst. Manager (Call Centre) Supervisor (Call Centre) Officer (Call Centre)

10,000 3,000 2,000 5,000 3,000 2,000

9.10

Evening and Gazetted Holiday Allowance (Shift Allowance) for Call Centre Staff The following Evening and Gazetted Holiday Allowance is awarded to Call Centre Staff only, through centralized payroll: Nature Evening Allowance Gazetted Holiday and Sundays Allowance Rs. 150/ day Rs. 1,000/- per day

9.11

Car Allowance/ Self Liquidating Car Loan (SLCL) in lieu of Bank Car 9.11.1. Objective Car Allowance is paid in lieu of Bank Car Facility from Range VI onwards. This allowance covers Car Loan installment (if any) maintenance expenses, insurance etc. 9.11.2. Eligibility Monthly Car Allowance/ SLCL will be provided to employees in range VI & above upon joining the Banks service, or on being promoted to such salary range. 9.11.3. Entitlement Grade Entitlement: Salary Range VI VII VIII and IX Car Allowance per Equivalent Bank Car month on SLCL 20,000/- Cultus 1000cc 30,000/- Honda City 1300cc 50,000/- Honda Civic 1800cc

Job Related Entitlement: Functional Title GH/ GM/ RM AM (RangeVII & above) BM (Range VIII) AM upto Range VI BM upto Range VII Team Leaders V & VI BMs(New/ Sub/ Smart Branch) Team Leaders (Range IV) Car Allowance 50,000/30,000/Self Liquidating Car Loan Amount* 1,725,000/1,080,000/-

20,000/-

779,000/-

*SLCL Amount will be allowed based on the prevailing Ex- Factory Price as approved by Management 9.11.4. Car on Banks Account In addition to Car Allowance/ SLCL, Group Heads/ GMs/ Range IX Executives/ Regional Managers of Range VIII will be provided second Car on Banks account based on their functional requirement as per following:Functional Title Group Head Bank Car Honda Accord/ Toyota Camry

General Manager Regional Manager (Range VIII & IX) Executive-in-Charge

Honda City 1300cc

9.11.5. Repair & Maintenance Maintenance of Bank the Car provided to above Executives will be on Banks account upto reasonable extent. 9.12 Profit Bonus/Special Cash Prize/Ex-Gratia Profit Bonus will be paid to the employees as and when declared by the Banks Management, based on guidelines provided in the respective bonus circular. Special cash awards/Ex-gratia/Bonuses may be paid based on outstanding performance with the approval of CEO. 9.13 Provident Fund (PF) 9.13.1. All permanent confirmed employees are eligible for membership of Bank Alfalah Ltd. Employee Provident Fund Scheme. An employee will contribute an amount equivalent to one months basic salary in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an equivalent amount will be contributed by the Bank. 9.13.2. PF deduction will continue to be made from monthly salary even if an employee has resigned and is working during the notice period. Membership of PF Scheme will be automatically cancelled on the last working day of the notice period. 9.14 Cash Award on Passing Institute of Bankers Diploma Exams Bank Alfalah, as a matter of policy encourages its employees to appear for the IBP Diploma Exams, the syllabus of which has recently been upgraded and expanded to include additional subjects important for professional bankers. Towards that end, it has been decided to award cash prizes to those employees who pass the said exams, as detailed below: Stage of IBP Diploma I II III 3rd Attempt Onwards 10,000 15,000 25,000

1st Attempt 50,000 75,000 100,000

2nd Attempt 30,000 50,000 75,000

Cash Awards received upon qualifying in IBP Diploma Exams will be refunded to the Bank if employee resigns from the Bank with in one year of receipt of said cash award. Accordingly, at the time of payment of cash awards, concerned employees are required to sign an undertaking to serve the Bank for a minimum period of one year. 9.15 Reimbursement of professional courses fee Bank Alfalah encourages its officers and staff to enhance their professional competence to meet the growing challenges of the financial industry. Part of the cost of registration/admission/exam fees will be reimbursed to those employees who undertake and successfully complete higher degrees and professional courses related to banking and finance (from recognized institutions) to improve their competence and qualifications. Details of this facility are available with HRD. In case an employee resign within one year of last payment received, all payments made in respect of above will have to be refunded to the bank by the said employee. Detailed policy guidelines are available in HRD record. Accordingly, at the time of reimbursement of educational expenses, concerned employees are required to sign an undertaking to serve the Bank for a minimum period of one year. 9.16 Staff Insurance

1. 2. 3. 4.

Renewal of group hospitalization insurance Medical Insurance Claim Form Panel Hospitals Process Flow for Taking Group Medical Insurance

The Bank has arranged the following types of insurance for its full time staff, at its own expense. The Banks Management may decide, at its discretion, to apply some or all of the benefits of any of these policies to staff engaged on contractual basis. Various features relating to these policies are subject to amendment from time to time. Benefits currently available are briefly introduced below: 9.16.1. Hospitalization Insurance Coverage for Employees and their dependent Parents, Spouse and Children

- All regular employees and only those contractual employees who are 60 years and above and are on Banks payroll and have submitted Hospitalization Insurance Form to insurance company are covered under hospitalization insurance arranged through Banks approved Insurance Company. - All contractual employees (below 60 years of age) who are on banks payroll will also be eligible for Hospitalization Insurance (for self only). 9.16.2. Follow-up Treatment In addition to the above, regular employees, their parents, spouses and children suffering from serious illness (see list below) will be entitled for reimbursements of cost of medicines, lab tests and consultation fee subject to the following, 9.16.2.1. If the treatment is likely to continue for a minimum period of six months or more. 9.16.2.2. If the treatment expenses for one month are equivalent to 10% or more of the monthly Basic Salary of the concerned employee. These claims will be lodged to HRD on Follow-up Expenses Claim Form as per along with medical bills, doctors prescriptions etc. List of Diseases Eligible for Follow-up Treatment

Cardiovascular disorders Strokes Cancer Multiple Scleroses Hepatitis B & C Major burns

Any other disease, as approved by Management, may be added to the list) Dependents (Hospitalization and Follow-up Treatment)

In case of working spouse (if not covered under insurance from his/her employer), will be eligible for coverage from the Bank. Working parents are not considered dependents and therefore are not entitled for coverage. They will be eligible only if they are fully dependent and live with the officer. Unmarried / Widowed / Divorced daughters, living with parents will be allowed insurance facility without age limit. Male children above 25 years of age are not covered under banks hospitalization policy. Male children below 25 years but married or engaged in gainful employment are also not covered under this policy.

9.16.3. Group Mortgage Insurance Coverage Lives of Employees of the Bank are covered upto the outstanding balance of House Finance liability (in the name of concerned employee or spouse) with the Bank would be taken over by the Insurance Company and no liability will be borne by the family of the deceased (subject to completion of certain formalities required by the insurance company). 9.16.4. Group Mortgage Insurance Coverage For Conveyance Finance (for Clerical and Non-Clerical Staff Only) Lives of Clerical and Non-Clerical Staff members are covered upto the outstanding Conveyance Finance liability with the Bank which would be taken over by the Insurance Company and no liability will be borne by the family of the deceased. 9.16.5. Life Insurance Coverage All employees of the Bank, who are on Banks payroll (whether in regular or contractual employment), upto the age of 65 years, will be covered under the Group Life Insurance arranged through insurance company as per following details. Category A B C Range IX & above VII VIII IV VI Sum Assured in PKR 5,000,000 3,000,000 2,000,000

D E

I III Non-officers

1,500,000 1,000,000

9.16.5.1. In addition to life coverage, the Bank has also obtained coverage for permanent disability due to accident and sickness upto the age of 60 years. In case of disability, benefit will be paid according to percentage of disability as per schedule provided by the insurance company. 9.16.5.2. The insurance policy is subject to conditions and exclusions provided by the insurance company details of which shall be maintained by the Human Resources Division. 9.16.5.3. Coverage: - Death due to any cause Disability due to sickness and accident as per schedule of disability. 9.16.6. Pay Continuation Plan In addition to Life Insurance, Bank has also obtained Insurance Policy of Pay Continuation Plan. Under Pay Continuation Plan, incase of death of an employee or permanent total disability (natural cause/ accident), their family members [as per nomination form] will be paid last drawn monthly Base Salary (i.e. summation of Basic Salary, House & Utilities) for five years, which will be effective from the date of death of employee/ permanent total disability. The salient features are as follows: Sum Assured Payment Period Age Limit Exclusion Free Cover Limit Last drawn Base Salary Five Years 18 to 65 years None Up to Base Salary of Rs. 195,000/- p.m. are covered without filling Health Questionnaire and completion of medical examination

9.16.7. Medical Checkup In addition to hospitalization cover, special arrangements have been made with the insurers whereby they will arrange for annual medical checkup of all officers in salary ranges VII and above. Executives of the Bank in range VIII and IX are also eligible for comprehensive annual medical checkup. 9.17 Uniform for Non-Clerical & Maintenance Staff All Non-clerical and Maintenance staff are provided uniform as per following details :Season Summer Winter Clothing Item Two safari suits One suit (jacket & trousers) with two shirts Pairs of socks Two Four Pairs of shoes One One

9.18

End Service Benefits BAL employees are entitled to the following end of service benefits: 9.18.1. Provident Fund (Own + Bank) plus investment income. (As per PF Rules) 9.18.2. Gratuity payment:- (As per Gratuity Rules)

If period of service is less than 05 years, no gratuity will be payable. If period of service is 05 years and above, gratuity will be payable equivalent to one months basic salary (last drawn) for each completed year of service. Period of any overseas posting other than with Bank Alfalah Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with Bank Alfalah Limited any local law governing gratuity will be applicable and if he/she is posted back in Pakistan the period of overseas posting with Bank Alfalah Limited shall be excluded provided gratuity is paid according to the local laws of overseas posting.

Unpaid study leave or long leave without pay will not be considered for payment of Gratuity or any other benefit. No Gratuity is payable if services are terminated on misconduct

9.18.3 Encashment of un-availed Privilege Leave (only in case of death / termination / Voluntary Severance Scheme) 9.19 Income Tax Liability Employees are personally responsible for preparation and submission of their personal income tax and any other personal taxation returns and reports, and for the payment of taxes, and of other statutory dues. The Bank undertakes no responsibility or liability in this respect, except for deduction of taxes at source, depositing the same with the concerned authorities, submitting required statements to the income tax department, and providing a salary and tax certificate for the tax year to the concerned employees. 9.20 Other regulatory requirements The HRD will ensure deductions of Employees Old Age Benefit Contributions, Social Security Contributions, Education Cess, etc. as per the rules and provisions of the relevant statutes (if applicable). 9.21 Salary Ranges/ Job Gradings Bank Alfalahs salary ranges provide a structure to which basic rates of pay is linked to various positions. All the employees are placed in these ranges based on seniority, level of current responsibilities, market value of these jobs and to pay and reward them based on their responsibility levels. BAL salary ranges start with Range I (entry level position) end with Range IX [Group Head/ General Manager level position]. These ranges reflect an individuals position, responsibilities, size of the operation (Branch / Dept.) and scope of assignment. Based on these considerations, various positions fall into BAL Salary ranges as follows: Job Positions Range Band IX

Group Head/ General Manager Head of Division/ DGM/ Regional Manager/ Regional Heads/ Product Heads Senior Managers at HO and Group Offices/ AGM Area Managers/ Zonal Managers Branch Managers according to size of the branch Team Leaders according to size of portfolio Head of Department of Large Size Branch (Credit/ Trade Finance/Operations Manager etc.) National Sales Managers Head of Large Department at Head Office Division Head of Credits/Foreign Trade/Operations Dept. of Medium size Branch Relationship Managers at SME Dept Heads at HO with more than 5 years relevant experience Head of Dept at Small size branch Branch Sales Officer or Branch Sales Supervisor Senior Officer at HO Divisions with more than 5 years of relevant experience Secretaries of Group Heads & GM Credit Officer or Trade Finance Officer CD In-Charge or Chief Cashier of Large size branch

VII - VIII

VIII VI - VII

V VII

IV - V

III - IV

III

Officers with more than 3 years of relevant experience ( Officers at Head Office, Officers of Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service/ Relationship Officer etc.) Secretary with 5 years or more relevant experience MTO (Post Graduates or foreign qualified) Fresh Officers Post Graduates or 4 years BBA/BS etc Officers who are Graduates with less than 3 years of relevant experience (Officers at HO, Officers of Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service Officer etc.) Entry level position / Fresh Graduates / Cash/Operations Officer

II

Job Positions

Range Band IX

Group Head/ General Manager Head of Division/ DGM/ Regional Manager/ Regional Heads/ Product Heads Senior Managers at HO and Group Offices/ AGM Area Managers/ Zonal Managers Branch Managers according to size of the branch Team Leaders according to size of portfolio Head of Department of Large Size Branch (Credit/ Trade Finance/Operations Manager etc.) National Sales Managers Head of Large Department at Head Office Division Head of Credits/Foreign Trade/Operations Dept. of Medium size Branch Relationship Managers at SME Dept Heads at HO with more than 5 years relevant experience Head of Dept at Small size branch Branch Sales Officer or Branch Sales Supervisor Senior Officer at HO Divisions with more than 5 years of relevant experience Secretaries of Group Heads & GM Credit Officer or Trade Finance Officer CD In-Charge or Chief Cashier of Large size branch

VII - VIII

VIII VI - VII

V VII

IV - V

III - IV

III

Officers with more than 3 years of relevant experience ( Officers at Head Office, Officers of Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service/ Relationship Officer etc.) Secretary with 5 years or more relevant experience MTO (Post Graduates or foreign qualified) Fresh Officers Post Graduates or 4 years BBA/BS etc Officers who are Graduates with less than 3 years of relevant experience (Officers at HO, Officers of Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service Officer etc.) Entry level position / Fresh Graduates / Cash/Operations Officer

II