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RemunerationPolicy

1. Definition

Forthe calculation
of the Hourly,daily,weekly,MonthlyandYearlyWageRates,
followingrelationship
betweenvariousunitsof assignment is assumed,whichis asfollows:

Year= 12 Months,Month = 175 hoursor 30 days,Week = 40 hours,Day= g hoursfor 5 daysor Day=

hoursfor 5 daysa week systemwith Fridayas 5 hours.Thetotal working hour in a week is accounted
as 40 hours.
Remuneration Rateis definedasthe combination of Basicsalaryor wagemultipliedby a factorto take
into consideration
the SocialProtectioncalledSocialChargesprovidingfinancialprotectionof the
employees for non-workinghoursor days,corporateoperationalexpensesand profitsfor corporate
protection.The Remuneration is representedby followingequation:

(1+CP)*
R=(BS+SS+CO)* (1+AE)

(BillingRate)
WhereR=Remuneration

SS=SocialCharges
equivalent to 42%of the BasicSalary
CO=Corporate
Overhead,equivalentto 85%Of BasicSalary
=
CP CorporateProfit,equivalentto t0%-15%.
basedon NRBpolicyfor NationalWage
AE=AnnualEscalation PriceIndex

2, WageRatePolicy

Thereis hardandfastrulefor conversion of Monthlysalaryto weekly,dailyor hourlyratesbut is

governedby negotiationskillsand collectivebargain.However,it is proposedto adopt compensation
factorsfor continuitygapfor employmentin daysand hours,whichare expressed
as follows:

HourfyRate= tlt76 of Monthly Salaryor wage *1.5

DailyRate= 8*HourlyRate* 1,2

3. AnnualEscalationof remuneration

of Salaryandwagesis definedby NepalRastraBank(66.Nationalsalaryand

TheAnnualEscalation
wagerateIndex(Overall),
which is calculatedat20.8%per annum(371.3from Jul 201.5/16
and 350.5for
Jul20ta/$). TheSalaryIndexrepresentedby a changerateof 2% per annum(256.7from Jul20t5/1,6
and254.7forJul 2074/15)is consideredimpracticaland far awayfrom reality.As a compromise,
the
averageof thesetwo figuresare taken,whichwill be (203%+2%l= tL.4%.

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The BenchMark BillingRatefor Va on professional
experienceis adoptedfromthe
of the BenchMarkremuneration
adoptedin Jan2017.Thesummary
BillingRates is asfollows,whichis
subject afterJan2018.
to annualescalation
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Themonthly
billing inclu
rates
w
\Sr.chigpolyn7 d EngineeriargFirms {SCAEF}
lits,Company's andtheFee
Overhead
funded
Nationallv tsr
Droier size(AsofJan2017\
ur r medium
Yearsof
SN Position Amount
Experience
a
I Project (Company
Director Sr.DirectoQ > 25years 460,000
(Highway,
Engineer
Senior Pavement,Bridge/Structural lrrigation, >15
, Hydropower, years 325,000
2 Water
SupplyandSanitation, Building
River, etc,)

Material
/Pavement Engineer/Environment
Engineer/Geologist/Geotechnical
EconomisVModeling
Engineer/Economist/Transport Doc
ExperUTender
10years 260,000
SpecialisUG
lS ExperUCommu
n Eng
ication/lT Eng
ineer/System ineer
/ System
Operations
andMgmt ExperUSafety
Expert

Hydrologist Manager
Advisor/CAD
/ Bioengineer/Legal 10years 230,000
4
6 Tunnel
Expert 10years 400,000
Architect
andLandscape Planner/Scheduler/Construction
Planner/Construction
Engineer
/ Mechanical
Planner/Scheduler/Electrical 10years
Enginee/SociologisUProject 240,000
Experl
Documentation
6

7 Quantity Engineer
/CostEngineer/AutoCAD
Surveyor 10years 220,000

8 Senior
Surveyor 10years 175,000

q ofWorks
Overseer/lnspector (l0W) 10years 120,000

1 0 Surveyor 10years 105,000

Draftperson
/AutoCAD Manager
0perato/Office 10years 80,000

12 Computer
0perator 10years 65,000
'l? Engineers/Architects
Graduate 5 years 120,000

itects
Engineers/Arch
1 4 Sraduate 1 years 80,000

1 5 Supervisor 5 Years 35,000

16 lhainman 21,000

Staff
1 7 Supporting
16,50C
Note:
TheFees
include Benefits
Social 420/o,Corporate 65%andFeesasProfits
Overhead of 10%.

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