Transport Policy

Al-Zaamin InvestBank provides vehicles to certain members of its executive staff as

a key component of their overall compensation package. The provision of this
benefit is in line with the compnay’s remuneration philosophy of utilizing a
competitive emolument package to attract and retain critical talent.

The principal criterion in determining eligibility will be appropriate recognition of an

individual Employee’s position based on his or her skills, experience and market
practice. Alternatively, vehicles may be assigned where mobility is a requirement of
the daily business functions of a position.

The structure of this policy is designed so as to provide support to the employees in

asset building. In addition, it affords a degree of independence to the employee in
terms of the upkeep and maintenance during ongoing use as well as upon cessation
of services or renewal of vehicle.

designati Tiers Vehicle Fuel / month

ons
MD / CEO As per Board’s Approval At actual

Deputy Tier 1 One Car within the limit up to but not At actual
CEOs / exceeding PKR 3,000,000/-
COOs
Toyota Corolla Altis or Honda Civic CTI Oriel
– Manual

SEVP / EVP Tier 2 One car up to but not exceeding PKR 250
2,200,000/-

Toyota Corolla Altis or Honda Civic VTI Oriel

– Manual

SVP Tier 3 One car up to but not exceeding PKR 225

1,600,000/-

Toyota Corolla XLI Manual

VP / AVP Tier 4 -5 One car up to but not exceeding PKR 200

1,300,000/-

Honda City – Manual

Manager Tier 6 One car up to but not exceeding PKR 175
800,000/-

Suzuki Cultus – Manual

Option II – CAR POLICY

The car policy will be applicable to staff in Bank cadres Manager thru SVP. The
policy is divided in to 2 criteria.

Staff in • The staff will be given a car loan at 6% per annum to

possessio purchase the Bank car in his/her use The loan amount will
n of car be ascertained by HR department at the market
value/purchase price whichever is lower; (not lower than
the book value, and based on immaculate condition of the
car).

• Employee will be given a fixed monthly allowance (as per

grade entitlement).

• Hire Purchase Agreement (HPA) – Bank will be marked

(cost will be recovered from the employee).

• Loan period will be for a period of 4 years (max.) e.g. if a

vehicle is 12 months old, then the loan payment tenure
will be 36 months (installment will be worked out on 36
months e.g. 48-12=36).

Promotion In case the employee is promoted where the car entitlement

changes,

he/she may continue with the same vehicle. In this case the
applicable

fixed monthly allowance will be paid.

or

Post repayment of existing loan, the employee will be eligible for

the enhanced loan

• •
• •

• •
 •

Purchasing policy

1. Henceforth all vehicles acquired for company’s use including those assigned to
personnel of the company shall be acquired on finance lease or hire purchase
through competitive bidding. If acquired on lease then lease terms of such
vehicles would be four years, monthly / quarterly rentals and 10% deposit and
salvage value.

2. Vehicles assigned to qualifying personnel under the transport policy shall be sold
at 15% of initial cost or salvage value whichever is higher after Four years of
use.

3. The change of vehicles shall take effect upon completion of period of use i.e
after Four years use. In case of promotion the change may be allowed if the
vehicle has been in use for more than two years and the employee agree to buy
the existing vehicle at lease termination value as determined by the bank or at
book value plus 25% (of the book value) whichever is higher.

Repair and Maintenance Expense

The bank will be responsible for general repair and maintenance expenses
incurred in order to keep the vehicle in excellent running condition. This
includes, but is not limited to regular servicing, tune-up, change of tyres,
batteries and other parts as needed since all repair are not covered by
insurance. Prior to formally accepting the vehicle, the Employee should examine
it carefully and report any fault.
Mobile Phone Policy

Due to the exigencies of business, Al-Zaamin InvestBank requires certain members

of management to remain accessible by colleagues and customers when out of the
office. Mobile phones are therefore provided to such employees to enable them to
remain in touch and thereby promote the smooth functioning of business.

The paramount consideration when determining eligibility for a mobile telephone

facility is the need for accessibility of the Employee. It is important to remember
that this facility is assigned strictly on a need basis and is not to be considered as a
perk.

Eligibility

All executives in the company in Tire 1 and other positions specified in Tier 2 & 3 as
required by the nature of their work are entitled to the facility of a mobile phone. In
addition to the above Management may allot mobile phones to certain lower
management level positions that necessitate the use of the same.

Entitlement – Billing

The usage limits for mobile phone users are stipulated in the following table:

designatio Tiers Limit per month

ns
MD / CEO Actual

Deputy Tier 1 Actual

CEOs / COOs

SEVP / EVP Tier 2 Up to PKR 5,000/

SVP & VP Tier 3 & Up to PKR 4,000/

4

AVP / Tier 5 & Up to PKR 3,000/-

managers 6

Entitlement – Equipment

Al-Zaamin InvestBank provides maximum flexibility to employees in choosing a

mobile telephone set to suit their individual preference. An employee may purchase
a set of his or her choice, and bank will reimburse this cost up to a maximum of PKR
15,000/- if the cost of the set exceeds the limit, the concerned employee would be
responsible for the additional monies. The telephone set remains the property of the
company. The mobile phone will be fully depreciated over two years and replaced
accordingly.

In case of cessation of services by a staff member within two (02) years of

purchase, the prevailing market value of the mobile set shall be adjusted from the
employee’s final settlement and the mobile phone set will become the property of
the departing employee.

Insurance

Al-Zaamin InvestBank will be responsible for insurance coverage of the telephone

set. The employee will bear the obligation to ensure that the equipment is handled
with due care.
House Building Loan Facility

Objective

The objective in providing House Building Loan facility and other benefits is to follow
market practices and provide benefits which cater to reasonable needs of the
individual.

Policy

1. Financing rate for house building loans will be fixed on half yearly basis based
on SBP Discount Rate minus four hundred basis points (base rate), prevailing
on January 01 and July 01 respectively, on the company’s cost of fund
whichever is lower.

2. Entitlement limit of loan is 50 (fifty) gross salaries.

3. Eligibility and conditions for the facility

• 3 years of confirmed services with the bank.
• Maximum years of loan should be 20 years or less than the remaining
services of employee till retirement, which is 60 years.
• Loan shall not be granted to employees having less than 3 years of
services remaining to retirement.
• The loan installment and other deduction should be of amount, which
should not exceed 40% of the gross salary.

Top-up

When the employee limit increases as a result of promotion / salary increase, the
employee can request an enhancement for home improvement, construction or
renovation once during service and tenure of that loan with bank.

The employee has to submit the following documents along with the loan
requisition:
• Architectural plan
• Cost of work plan
• Survey report of existing premises and its valuation
• Terms of payment – contractor or applicant

Security of Loan

The company would create a token mortgage on the last installment of the loan
amount in addition to the possession of the original property document.
GROUP LIFE INSURANCE
The Bank is concerned about the welfare of the family in case of an unfortunate
death or disability of the employee while in the employment of the Bank.

All staff members of the Bank are insured under the Group Life Insurance scheme in
the event of early and untimely death.

The employees are insured against following emergencies:

• Natural death;
• Accidental death;
• Permanent / partial disability;
• Temporary / total disability (accident only);
• Terminal illness benefit (natural).

Entitlement

• All employees irrespective of grade are covered up to a maximum sum of PKR

__________
• The Bank will arrange to insure the employee.
• The Bank will update the insurance company in case of separation of
employee.
PROVIDENT FUND

As per rules an amount of ten percent (10%) of a permanent employee’s basic

monthly salary shall be contributed by the Bank towards the Provident Fund on a
monthly basis to match a similar contribution made by the employee towards the
Fund.

Contributions towards the Fund shall begin after the confirmation of permanent
employment.

As per P.F. rules devised by the bank, every member on conclusion of service is
entitled to receive from the Provident Fund, his/her own contribution as well as
contribution of the Bank with profit thereon.

An employee who resigns from the Bank is entitled to receive contribution made by
the Bank and profit thereon of the Fund (rule 38), as amended. (Please note that
this is subject to approval from PF trustees and regulatory authorities, which is
awaited).

As per rule 39, if a member is dismissed from service of the Bank for misconduct
including but not restricted to dishonesty, disobedience, insubordination, absence
without leave, neglect of duty, any form of misconduct, found guilty of any criminal
offence, he/she shall not be entitled to PF contribution made by the Bank and the
profit thereon standing to his/her credit in the books of the Fund.

Provided that the workman cadre (clerical/non-clerical) employee shall be entitled

for PF even in case of dismissal