COMPENSATION BENEFITS AND PERFRMANCE APPRAISAL

Compensation and benefits is the most pivotal element affecting an organizations overall performance. It is directly related to employees commitment with the organization and leading organizations always use it as a tool to attract and retain the most talented human resource capital. 6.1 Compensation and Benefits at PSO PSO provides matchless intrinsic as well as extrinsic motivations for development of the professionalism. Following is a brief of motivations provided to its employees by the PSO: A. B. SALARY STRUCTURE FRINGE BENEFITS

STAFF LOAN POLICY FACILITY OF OUTSTANDING DUTY FACILITY OF COMPANYS CAR & PETROL CEILING MEDICAL FACILITIES TELEPHONE CHARGES AT RESIDENCE FACILITY OF NEWSPAPERWS & JOURNAL GROUP TERM ASSUARANCE CASH AWARDS FOR ACQUIRING RETIREMENT POLICIES PROFESSIONAL/ACADEMIC QUALIFICATION FAMILY PENSION

GRATUITY BENEVOLANT FUND SCHEME

 GRANT FROM THE FUND GIFT TO RETIRING EMPLOYEES 6.2 General Salary Structure (Officer Cadre) Salary Grade OG 7 OG 6 OG 5 OG 4 OG 3 OG 2 OG 1 Minimum (PKR) 58,500 43,400 40,200 36,500 30,000 25,000 16,481 Maximum (PKR) 135,300 109,300 103,000 95,000 83,000 67,500 47,850

(Support Staff Cadre) Salary Grade S 7 S 6 S 5 S 4 S 3 S 2 S 1 Minimum (PKR) 14,400 13,838 11,903 10,733 9,675 8,573 8,100 Maximum (PKR) 37,400 34,500 31,600 29,000 24,500 20,300 18,700

(Specialized Salary Structure)

Level Entry Middle Higher Managerial

Minimum (PKR) 40,000 60,000 80,000 M-1or M-2

Maximum (PKR) 80,000 120,000 150,000

6.3 Core Benefits (applicable across salary structure)

6.3.1 Medical Full medical facilities for self, spouse, children and dependent parents as per Company rules. Also, applicable to retired employees 6.3.2 Rest & Recreation Leave & Allowance 15 days leave with 50% of monetized salary as Rest & Recreation Allowance each year for Officers. 6.3.3 Leaves All officer-grade employees earn leaves for every 6 working day. All support-grade employees earn leaves for every 5 working days. Leaves earned can be accumulated up to 40 per year for Officer-grade employees. Leaves earned can be accumulated up to 72 per year for Support-grade employees. Upon accumulation of leave balance, the employee can proceed to perform Hajj once in the entire service

 90 days maternity leaves (exclusive of regular leaves) are allowed to all female employees subject to maximum of three times. 6.3.4 Staff Loans Personal loan (Interest free) to meet emergencies up to 03 monetized salaries payable in a maximum period of 2 years House Building Loan / Car Loan up to 60 monetized salaries payable in the entire remaining service (up to 60th birthday of employee). Computer loan of PKR 70,000 (maximum) payable in the entire remaining service 6.3.5Group Term Assurance (GTA) Group term assurance covers the employee as under: Salary Ranges (PKR) Sum (PKR) 55,001 and Above 37,501 to 55,000 18,001 to 37,500 Up to 18,000 1,500,000 1,000,000 800,000 600,000 Assured Life Insurance

Premium (PKR) 312.50 208.33 166.67 125.00

6.3.6

Deputation Allowance Employees are entitled to additional 20% of their monetized salary as a Deputation Allowance along with comprehensive medical facilities for self and dependent family members.

6.3.7

Annual Merit Increases

Annual Merit Increase (AMI) is paid as per following schedule: For Employees in Grade OG-1 and Below: AMI for employees in grades OG-1 and below has been determined on the basis of their average marks awarded by the reporting and finalizing officers as per following grid: Range of Marks 49 50 47 48 41 46 11 40 0 10 For Employees in Grades OG-2 to OG-5: AMI for employees in grades OG 2 to OG 5 has been determined on the basis of placing the absolute performance ratings of employees as reported by their respective appraisers in appropriate clusters and thereafter categorizing these ratings in accordance with Bell Curve principles into four appraisal categories as follows: Appraisal Category A = Outstanding Performers B+ = Above Average AMI % 9% 7% AMI 4.5% 4% 3% 2% Nil

B = Fully Satisfactory C = Below Average For OG 7 Employees: AMI for OG- 7 employees at a uniform rate of 6 %.

5% 1.5%

For Employees in Separate Salary Structure for Specialized Professionals: AMI for employees in cluster of Separate Salary Structure for Specialized Professionals has been determined at a uniform rate of 5%. 6.3.8 Performance Bonus

Top 10% of performers in the Company are paid a one time Performance Bonus@ 3% of annualized monetized pay

6.3.9

Company Provided Car

Entitlement (Pakistan assembled) OG5 800 cc car (AC) without petrol ceiling and driver salary

OG6 1000 cc car (AC) without petrol ceiling and driver salary OG6 (HOD) 1000 cc car (AC) with petrol ceiling (200 Liters) and driver salary OG7 1300 cc car (AC) of their choice with petrol ceiling (340 Liters) on optional Companys driver or driver salary

6.3.9.1 Transfer of Ownership Cars are provided to the employees on the basis of a loan depreciation scheme. On completion of 5 years deprecation life of the cars the assignee becomes the owner of vehicles. 6.3.10 Telephone Facility .OG.7 OG.5&4 (900 calls) (400 calls) OG.6 OG 3&2. (600 calls) (200 calls)

6.3.11 Post Retirement Benefits Officers Grade 4 and above on their retirement or their family members in the events of employees death are entitled for the following additional benefits for a period of six months: a) b) 40% Monetized pay in lieu of House Rent Ceiling Electricity, Gas and water charges as per entitlement at the time of

Retirement/Death c) 50% of telephone charges as per entitlement at the time of

Retirement/Death d) Cost of 50% Petrol Ceiling as per entitlement at the time of

Retirement/Death 6.3.12 Pension Policy

Prior to 1997 Federal Government rules as contained in Compendium of Pension Rules and Order were applicable in PSO. After magnetization, the concept of pay has been abolished and 50% of monetized salary is taken into account for the purpose of calculation of retirement benefits. 6.3.13 Education Allowance Rs.500/- per month is allowed to Clerical/Non-Clerical employees. 6.3.14 Traveling & Transportation Charges a. Officers on their retirement are entitled to reimbursement of economy class

airfare for self and eligible family members from the airports nearest to their place of posting and their hometown as per PSO record or they can claim payment of ACC sleeper train fare. b. All officers and staff of the PSO either on transfer or retirement are entitled to

actual cost of transportation of household effects to their place of new posting/domicile outside Karachi against production of proper receipts subject to a maximum amount of one months monetized salary. 6.3.15 Travel & Daily Allowance (a) under: Category of Employees S-1 to S-3 S-4 to S-7 OG-1 to OG-4 Positions Non-clerical Staff Clerical Staff Gross DA (Rs) 800 1500 The rates of gross Daily Allowance for different categories of employees are as

Junior Officer to Deputy 2600

Director OG-1 to OG-4 Junior Officer to Deputy 2600 Director OG-5 to OG-6 OG-7 Joint Director/Director Executive Director 3030 3500

For official tour of OG-6 and OG-7 PSO provides transport facility, while other officers/staff are entitled to 10% of the DA to meet their transport requirements. (b) The rates of gross Daily Allowance for employees hired under the separate Salary Structure for Specialized Professional is as under: Sr. No Employee Category Daily Allowance Entitlement per day 1 2 3 4 Entry Level Middle Level Higher Level Management Level
Rs.2600/=

Rs.3030/= Rs.3030/= Rs.3500/=

Note: Employees in Entry Level and Middle Level are entitled to 10% of DA as conveyance charges. Employees in Higher Level and Management Level are entitled to 10% of DA as conveyance charges or to avail the facility of PSO transport. Employees in Management

Level have the option to avail entitlement of normal DA or stay at prescribed hotel on actual basis (only room rent and applicable taxes will be paid by PSO). In case they avail the hotel facility on PSO account, they are entitled to receive a sum equal to 33% of their normal DA entitlement. 6.4 Retirement Policies: There are two Retirement Benefit Schemes in the PSO viz. Contributory Provident Fund & Gratuity Scheme and the other is General Provident Fund & Pension Scheme. Salient features of these schemes are as under: 6.4.1 Contributory Provident Fund and Gratuity Scheme: A retiring employee who is governed under this Scheme (on the basis of option) having 10 years or more service and in case of his/her death during service, his/her family members are allowed Gratuity @ one months monetized salary for each completed year of service, for entire period of service and for service beyond 30 years, a sum equal to half months monetized salary in respect of each compl eted year of service in the PSO is also admissible to OG-2 and above. 6.4.2 General Provident Fund and Pension Scheme: An employee who retires after completing not less than ten years of total qualifying service is entitled to gross pension. 6.4.3 Commutation of Part-Pension An employee may at any time before the expiry of one year from the date of his retirement, request the sanctioning authority in writing for commutation Upto 50% of his/her gross pension.

6.4.4 FAMILY PENSION: In case of death of employees who had completed not less than ten years of total qualifying service or while in receipt of pension his family is entitled for pension at the rate of 50% of the gross pension from next day of his/her death. The family pension is admissible to dependent disabled/retarded children for life and to the widow/unmarried daughter until she gets married. 6.4.5 Gratuity: Where an employee retires or dies after completing qualifying service of five years or more but less than 10 years and is not eligible to receive pension, he or, as the case may be, his/her family shall be paid a Gratuity at the rate of 50% of monetized salary for each completed year of qualifying service of the employee.