COMPENSATION & BENEFIT POLICY

COMPENSATION & BENEFIT POLICY

This chapter outlines the rules relating to compensation structure and the benefit package of the
organization and gives detailed procedures for exercising them in order to promote fair treatment and
consistency within the Bank.

1. SALARY STRUCTURE
Refer to the Salary Structure for The City Bank Limited for details regarding the structure of salary
and allowances for different positions in the Bank. The Salary structure of the Bank will be reviewed
as and when the management deem appropriate to allow for adjustments in the Cost of Living and
market forces pertaining to the Banking industry. The HR Department is responsible for initiating the
review and their recommendations are approved / disapproved or amended by the Management and
finally Board of Directors.

2. REVISION OF PAY ELEMENTS

Once approved by the Board of Directors, the salary document becomes a controlled document. The
compensation structure may be revised, if necessary, with the approval of The Board of the Bank.

3. EMPLOYEE’S COMPENSATION RECORDS

The HR Department maintains employee Pay Records. This department maintain personal file of all
employees where all records in regards to the employee are kept in addition to any soft copy (in
computer database) maintained by HR . These records are confidential and should not be accessible to
any unauthorized persons (authorization defined by MD). Salary and benefits are confidential and as
such should not be discussed with anyone else. Sharing such sensitive data may lead to disciplinary
action.

Employees salary and other allowances will be processed by HR. Concerned personnel from the HR
Payroll team will process the all salary and allowances whereas the Head of HR Operations will
approve the payments on monthly basis or as and when needed. HR Payroll team may also approve any
payment through Finacle.

4. BENEFITS PACKAGE FOR CONTRACT EMPLOYEES

Refer to the Benefit Packages offered for Contract Employees in their appointment terms for details
regarding the benefit packages for the contract employees of the Bank.

5. BASIC EMPLOYEE BENEFITS FOR PERMANENT EMPLOYEES

5.1. Provident Fund

The Organization's Provident Fund is a funded scheme. All confirmed and permanent employees are
entitled to be members of the Provident Fund. The employee contribution, equal to 10% of the basic
salary, is deducted each month through the payroll. The organization contributes an equal amount
and both the employees' and the organization's contributions are paid to the Fund each month. In the
provident Fund Ledger, both the employee's and the organization's contribution are credited to the
individual employee's account.

Compensation & Benefit Policy Confidential Document Page | 1

The provident fund is managed as per the "Contributory provident Fund Trust Deed", a copy of which is
preserved in the HR Department Employees will be able to view their monthly contribution through
explore self service.

80% of the yearly forfeiture funds of the members are distributed among the existing active employee
based on their yearend balance, remaining 20% of the fund is being kept as welfare fund for the
welfare of the employees and their first degree relatives. This welfare fund is managed at the sole
discretion of the CBL PF Trustee Board nominated by the Board of Directors of the Bank.

5.2. Gratuity Policy

The Organization's Gratuity benefit is a funded scheme. Employees serving the Bank for less than 5
(five) years are not eligible for any Gratuity benefit. All confirmed and permanent employees, serving
the Bank for more than 5 (five) but below 10 (ten) years, are eligible for Gratuity benefit @ 1 basic for
each completed years of service. All confirmed and permanent employees, serving the Bank for more
than 10 (ten) years, are eligible for Gratuity benefit @ 1.5 basic for each completed years of service.

Lateral entries from other banking institutions shall not be considered for eligibility for gratuity in
CBL. Employees working only in CBL for 5 (five) years or above are eligible for gratuity.

In computing years of service, period of 6 (six) months or more shall be taken as a year.

The Gratuity fund is managed as per the "Deed of Trust of The City Bank Ltd. Gratuity Fund", a copy of
which is available with HR.

5.3. Group Term Life Insurance:

The organization provides coverage of life insurance to all permanent employees after their joining
with the Bank effective on the date of joining. To participate in the Group Term Life Insurance policy,
all employees are required to fill up "Group Term Life Insurance Registration Form", and submit HR
Department for processing. To change the beneficiary at any time, the employee must complete the
"Beneficiary Change Form" and submit to the HR Department for making the changes. In case of any
accidental death while in service, the nominee of the employee will receive double the coverage
amount.

In the event of the death of an employee while in the Bank’s service, the organization depending on
the classification of employees shall pay benefits on normal and accidental death from insurance
company as follows:

(Other than: 1) death by suicide, 2) death by criminal prosecution, or 3) death by taking part in any
activities subversive of the state.)

Compensation & Benefit Policy Confidential Document Page | 2

 Grades Coverage Amount
MD/AMD/DMD 2,000,000
SEVP 1,800,000
EVP 1,600,000
SVP 1,400,000
FVP 1,300,000
VP 1,200,000
SAVP 1,100,000
AVP 1,000,000
SEO/SECO 900,000
SO/SCO/EO/ECO/MT 800,000
Officer/CO 600,000
ACO/JCO/JO/Stenographer 500,000
Com.Operator/Electrician/G. Keeper/Generator
400,000
Operator/Sr.Com.Op/Tel. Operator
Attendant/Cleaner/Driver/G.
300,000
Chowkider/Gardener/Plumber/S. Guard

5.4 Group Hospitalization Policy

All permanent Employees of the bank and their spouse and children are covered under Group
Hospitalization Insurance Plan through insurance company as per following coverage:

Plan Executive Executive+ Executive+

Coverage Per Person Per Disability 50,000 80,000 80,000

Category of Employee Non-Officer Officer-SEO AVP & Above
Daily Hospital Room Rent (Actual or Max.) 600 1,200 1,600
Total Amount of Hospital Room Rent 20,000 30,000 30,000
ICU Limit per confinement 15 days 15 days 15 days
All other In-Patient treatment expenses inclusive
of surgical charges, consultation fees, medicines,
medical appliance and relevant medical
30,000 50,000 50,000
investigations related to the ailment and other
ancillary services (excluding Room & ICU charges)
maximum per disability.

In addition to the above, both the categories (female spouse and married female employees) are
entitled for a maternity benefit as per the contracted plan as follows:

Normal Delivery 10,000 15,000

Caesarean Delivery/Ectopic Pregnancy 20,000 25,000
Legal Abortion 5,000 7,500

Compensation & Benefit Policy Confidential Document Page | 3

Claim Procedure

Inclusion

To avail the hospitalization facility, employees, his/her spouse and children must be updated in the
explore system. Employee is solely responsible for updating his status, e.g. marital status, children in
explore. Failing to update on time, employee/spouse/children may be deprived from claim
reimbursement.

Claim process

1) If a Member is admitted in a Hospital/Clinic with whom the Company has Direct Payment
Agreement and the bank has requested the insurance company to provide cashless treatment
facility to the concerned Member, the insurance provider shall pay all eligible expenses incurred
for hospitalization treatment within his benefit limit, directly to the hospital/clinic. Any expenses
not mentioned in the Benefit Schedule or in excess of the Benefit Limit should be borne by the
Member himself/herself.

2) Where the Direct Payment Agreement with the insurance company does not exist, employees are
required to submit ‘Claim Form’ to the Company within 60 (sixty) days after discharge from the
Hospital/Clinic for reimbursement of expenses.

Required documents for claim submission:

i. Photocopy/Scan Copy of Consultant’s recommendation for hospitalization

ii. Photocopy/Scan Copy of Discharge Certificate
iii. Original Money Receipt or Bill of Consultant’s (Physician/Surgeon) Fee
iv. Original copy of Bill relating to room charges, investigations and other services where
applicable
v. Original copy of Bill of medicine/drugs
vi. Original copy of Bill relating to Surgical Operation charges (operation theatre, surgical
team, delivery charge, anesthesia & other charges), where applicable
vii. Original copy of Bill relating to ancillary charges (e.g. ambulance service, oxygen therapy,
blood transfusions etc.)

Accident while on Duty:

In case of any accident / injurious incident while on duty, the bank shall bear all necessary expenses
if not covered by medical insurance scheme.

Compensation & Benefit Policy Confidential Document Page | 4

5.5 Festival Bonuses:

Employees of the Bank are entitled to two Festival Bonuses each equivalent to "Basic Salary" under the
following conditions:

1. All permanent/confirmed employees of the bank will get festival bonus equivalent to their 01
month basic salary, if they are on the bank’s payroll during the festival and they are with CBL for at
least one month before the festive day, subject to appearance of moon if applicable.

2. All temporary employees (including DST) will get festival bonus equivalent to 01 month basic of
their individual salary; provided, they are on the bank’s payroll during festival and if they are with
CBL for at least one month before Eid Day, subject to appearance of moon if applicable.

3. Employees on probation period will get festival bonus equivalent to 50% of their basic salary, if
they already have completed minimum 1 month of service with City Bank. However, employees
who are confirmed before the festival date, he/she will be treated as confirmed employee and
will get full Bonus (1 month basic).

4. Management Trainees will get festival bonus equivalent to 01 month basic of their individual
salary.

5. Employees who have already submitted their resignation but active on bonus disbursement date
will be eligible for festival bonus, but if his/her last working day is before Eid day he/she will not
be entitled for any festival bonus. However, if the retirement date of any employee is on or
before the festival day and active in payroll of the bank during disbursement date, then he/she
will be entitled for festival bonus.

6. Employees who are under leave without pay or unauthorized leave will not get any festival bonus.
However, will be entitled if joined.

6 Employees under suspension pending enquiry or under live disciplinary action will not be entitled;
however, he/she will be entitled for festival bonus after completion of disciplinary process.

7 All employees will receive the one festival bonus during Eid-ul-Fitr (1st week of Ramadan) and
second festival bonus will be received during their respective festival (Eid-ul-Azha, Durga Puja,
Christmas, Buddha Purnima). Second festival bonus will be disbursed two weeks prior to the
festival.

8 Lateral movement from another employer, newly joined employees who did not avail festival
bonus from his/her previous employer, where provisions for festival bonus was in practice, shall
also be entitled for festival bonus as usual.

Compensation & Benefit Policy Confidential Document Page | 5

5.6 Utility Allowances:

The Bank does not provide any utility allowance to the employees of the Bank, however. Executives
(AVP and above), receives Utility Charges as part of their monthly gross salary. .

5.7 Mobile Phone Allowance:

The bank provides mobile phone allowance from AVP and above as per their respective grade along
with their monthly salary as follows:

Grades Amount per month

Senior Executive Vice President 2,500
Executive Vice President 2,250
Senior Vice President 2,000
First Vice President 1,750
Vice President 1,500
Senior Assistant Vice President 1,000
Assistant Vice President 750

5.8 Office Phone / Usage Limit

Based on the organization’s need, a mobile telephone may be provided to the employee . The phone
is to be used primarily for operational purpose, A separate office note is raised justifying the need,
which mentions the handset cost and monthly usage. The entire process is managed by GAD.

5.9 Charge Allowance

In order to motivate the Branch Managers / In-Charges who are responsible for their respective
branches, are eligible for a monthly charge allowance according to their branch gradations. HR
Division processes the disbursement of Charge Allowance of previous month along with the current
month’s salary.

5.10 Key Allowance

3 key holders of any branches are entitled for a monthly key allowance. HR Division processes the
disbursement of key Allowance of the previous month along with the current month’s salary.

Compensation & Benefit Policy Confidential Document Page | 6

5.11 Evening Banking Allowance

Based on business requirement, certain branches are required to be operational beyond regular
working hours. Employees of these particular branches are eligible for Evening Banking Allowance. HR
Division processes the disbursement of Evening Banking Allowance of the previous month along with
the current month’s salary.

5.12 Saturday / Holiday Banking Allowance

Certain branches are required to be operational on Saturdays/holiday based on business requirements.

Detail process and mechanism is elaborated in a separate office note. Eligible employees of those
particular branches are eligible for Saturday/holiday Banking Allowance of the previous month along
with the current month’s salary.

5.13 Employee Car Loan

The Employee Car Loan Policy of City Bank Limited (CBL) is formulated to define employee car loan
scheme which is applicable for Assistant Vice President (AVP) up to Senior Vice President (SVP) only.
Under this scheme, CBL finances to support employees to have their own transport for personal
convenience and safer mode of transport. Car loan policy and process is detailed in a separate section
of this manual.

5.14 Employee House Building Loan

The Employee House Building Loan (HBL) policy of City Bank Limited (CBL) is formulated to define
employee house building loan benefits. This policy guideline describes the detail technicalities to avail
this benefit within the policy guideline. Employee House Building Loan policy and process is detailed
in a separate section of this manual.

6. FINANCIAL ASSISTANCE SCHEMES

To meet various emergency and incidental expenses, the organization provides financial assistance in
the form of advance payment of salary and loan against provident fund to its employees. The
following sections give detailed procedures for salary advances and loan sanctions Financial Assistance
Schemes. Purpose of these schemes are as follows:

The following priorities will be maintained for PF loan or salary advance request processing:

 Medical emergencies for self, spouse, children or other dependents

 Death of spouse, children or other dependents
 Own marriage
 Marriage of siblings / children
 Education for children
 Other emergencies (at the discretion of the management)

Compensation & Benefit Policy Confidential Document Page | 7

6.1 Loan in Lieu of Provident Fund: Eligibility, Limits and Repayment:

The eligibility criterion for drawing loan against Provident Fund, the loan limit calculation and the
repayment method is discussed below:

1. All Permanent employees who are members of the Contributory Provident Fund and have
been in the organization for 2 years but less than 3 years , are eligible to take loan against
the provident fund equal and up to 80% of the employee's own contribution.
2. All Permanent employees who are members of the Contributory Provident Fund and have been
in the organization for more than 3 years but less than 5 years, are eligible to take loan
against the provident fund equal and up to 90% of the employee's own contribution.
3. All Permanent employees who are members of the Contributory Provident Fund and have been
in the organization for more than 5 years, are eligible to take loan against the provident fund
equal and up to 80% of the total contribution (employee's own contribution + organization's
contribution).
4. The duration for repayment of PF loan is set at 5 years. Who have less than 05 years to retire
can avail PF loan where EMI would be calculated as per their remaining years. However
Divisional Head can approve any exceptions. The employee, through automatic deductions
from his/her monthly pay, makes the payment.
5. The rate of interest of PF loan will be 7% simple, however this may change from time to time
based on prevailing market practices, cost of fund and at the discretion of the Board.
6. If an employee has availed loan against the provident fund, he/she is not entitled for
receiving any fresh loan against PF prior to settlement of the earlier loan. However, in
special circumstances, Divisional Head may consider fresh PF loan after 12 months of the
previous loan, subject to the condition that the earlier loan must be settled first from the
disbursement of the new loan, provided the employees total salary & allowance permits the
installments.
7. Employees availing house building loan are not eligible for PF loan. However, in special
circumstances Divisional Heads may approve the PF loan who is already enjoying house
building loan and property has already been mortgaged. In case if the property is not
mortgaged with the bank, special approval will be needed from the Business Head to avail
the pf loan.

6.2 Salary Advance: Eligibility, Limits and Repayment:

The eligibility criterion for drawing salary advance, the limit calculation and the repayment method is
discussed below:

Compensation & Benefit Policy Confidential Document Page | 8

 1. Salary Advance is given only in those situations where the permanent employee does not have
enough contribution to the Provident Fund but the urgency is very high. Usually two month's
gross salary is given as advance but based on the emergency;
2. One month's grace period may be given to the employee before the repayment starts. The
employee, through automatic deductions from his/her monthly pay, makes the payment. The
following are some guidelines for repayments. the employee must pay back the amount with
12 equal monthly installments.

6.3 Procedure for Loan against PF or Salary Advance:

The employee completes a "Loan Application Form" along with a recommendation from his line
manager / divisional head and submits it to the HR Division. HRD personnel reviews the application,
discusses with the employee, if necessary. The loans/ advances are approved by the Head of HR. HRD
then lets the employee know about the outcome. Any exception in PF Loans is sent to Business Heads
for special approval.

Compensation & Benefit Policy Confidential Document Page | 9