HCG/Rewards/01/2023

27th February, 2023

All Permanent Employees (Pakistan Operations)

25 Years Celebration - Performance Rewards 2022

Dear Colleagues,

In 2022, despite multi-faceted challenges posed by tough economic conditions prevailing in the country, our
performance has been strong. Thanks to the contribution of our dedicated employees whose commitment,
perseverance, and hard work has enabled us to achieve positive outcomes. We extend our sincerest gratitude
to all our employees for embodying our values and living up to our One Bank, One Team motto, thus enabling
the Bank to deliver exceptional service to our customers and communities.

During the year, we have been awarded many accolades like “Best Digital Bank” and “Best Bank in
Housing Finance” from Pakistan Banking Awards, “Best Investor Relations”, “Best Transaction of the
Year”, runners up award “Best Bank of the Year – Large Banks” from CFA Society Pakistan’s 19th Annual
Excellence awards, “Best Bank for Cash Management – Pakistan” and “Best Bank for Trade Finance
– Pakistan” in Global Transaction Banking Innovation Awards, ”Effie Award for Home Remittance
Campaign”, “PSX Top 25 companies Award”, 10 awards at Global Diversity, Equality & Inclusion
forum including 7 Best Practices and 3 Progressive awards, and many other such recognitions from
various prestigious forums. In addition, the Bank undertook the first share buyback transaction in the Banking
Industry, which is also the largest buyback transaction in Pakistan’s capital market.

The Bank’s Board and Leadership is aware of the challenges and difficulties faced by the employees during
2022 owing to high inflationary conditions and devastating floods that affected 1/3rd of the country and took
various initiatives to ease out the situation for the employees:
 Ad hoc financial assistance allowance,
 Financial assistance program for employees and their families affected by the torrential rains and floods.
An allocation of PKR 100Mn has been made for this program with so far PKR 75Mn disbursed to 408
staff members,
 Staff Welfare program for employees for assistance on medical front over and above the medical
insurance, educational and marriage grants (so far PKR 75Mn has been utilised from the fund providing
relief to 514 staff members).

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2023 is a notable year for us, as we Bank Alfalah achieve a significant milestone of “25 Years of Service” in
Pakistan. During these years, we have been committed to creating an enabling culture, leading innovation in
the Industry and focusing on Customer Centric services and products. Our way forward has enabled us to stay
ahead of the curve and reshape the future.

As we celebrate our 25th Anniversary, we are pleased to announce the following initiatives, benefits, perks and
policy changes:

 “It’s not the time to retire… yet”:

At Bank Alfalah, we value our human capital the most, and to bring longevity to the careers of our valued
employees, retention of skill set, experience and for mentoring and development of the younger and
dynamic employees, we are enhancing the retirement age to 65 years for all permanent employees (OG-
IV and above) in Pakistan Operations effective immediately. We will be the only Bank in the country with
employment for life opportunity with this initiative. The above enhancement will be treated as continuation
of service with all existing perks and benefits like:
o Staff Finances,
o Provident Fund,
o Gratuity,
o Health Insurance coverage for self, spouse, dependent children and parents,
o Life Insurance Plans (Life, Pay Continuation Plan and Staff Finances).

 Minimum Starting Salaries:

The Management with the advice of the Board, is taking the market leading initiative of revising the
minimum starting salaries at all levels, with minimum gross salary (base salary + allowances) for OG-IV set
at PKR 40,000 per month as against previous minimum salary of PKR 30,000 per month. The change will
be effective from 1st January, 2023.
PKR per month

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 Accordingly, the following revised structure shall be applicable from 1st January, 2023:
PKR per month

VP-I employees are now being allowed SLCL allowance instead of conveyance allowance. In addition,
they will now be eligible to avail SLCL finance facility of PKR 3.0 Mn at 0% markup rate to be recovered
over 7 years. Employees may request for conversion of their existing conveyance finances into SLCL
facility or settle them and re-avail under SLCL finance.

 House Finance Policy:

House finance policy being revised as follows:

o House Finance facility will now be upto PKR 65 Mn subject to meeting DBR conditions instead of
previous grade wise limits (limit 1 and limit 2 have been abolished),
o Finance tenure has been extended from previous 25 years to 30 years from the date of
disbursement or the age of retirement i.e. 65 years whichever is earlier,
o Markup rates have been revised as follows:

o Installments to cater for the above effect have been incorporated in the payroll effective 1st
February, 2023 except the following:

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  Where principal amount stands adjusted and only accrued markup is outstanding, such
finances will continue as per their existing tenure,
 In cases, where principal outstanding is less than 20% of the approved amount, repayment
period will not be extended, however revised markup rates shall apply.
o Due to revision in the terms and conditions, as stated above Centralized Staff Finance unit will be
contacting the respective employees for completion of the legal formalities shortly.
o All other terms and conditions as stated in the Staff House Finance policy shall remain applicable.

The above changes will result in improving the take home salaries of our employees specially considering
the tough economic conditions.

 Other Benefits:
PKR per month

 Rental allowance terms & conditions: The monthly rental allowance will now be
applicable for the duration of posting effective from the date of transfer instead
of previous stipulated period of 2 years. However, employees who request for transfer
on their own, will not be eligible for such allowance. Prior approval from HCG for such
transfers would be required. Rental allowance revision is effective 1st January, 2023.
 Handset allowance terms & conditions: Handset allowance has been revised and shall
now amortize over 3 years effective 1st February, 2023. Existing disbursed allowances
will amortize over the period of 2 years from the date of their respective disbursements.
 Saturday working allowance:
 has also been increased to PKR 1,500 for Branch Managers, PKR 1,200 for
Branch Operations Managers and Floor Managers, and PKR 800 for other Branch
Operations staff & Service Ambassadors.

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  In addition, the emergency allowances and gazette holiday allowances have been
revised. Please refer to the revised Policy Guidelines for changes.
 Travel Policy: within city travel rates have been revised to PKR 25 per km when
using personal car and PKR 8 per km for using motorcycle for the purpose of business,
attending meetings or trainings.

 Staff Insurance Policy:

Considering the high inflation and increasing medical costs, the limits have been revised as follows:
PKR per month

The above limits include top up plans for which employees will be charged a nominal fee of PKR 975 per
insured to be recovered on 12 equal monthly installments i.e. PKR 81.25.

 Performance Rewards 2022 – Minimum Increments for 3, 4 & 5 raters

Performance Rewards will be disbursed to the eligible employees along with February’s payroll. Eligible
employees will be communicated their rewards (increment, promotions, and bonus) through their respective
Group Offices.

To provide relief to our performing employees specifically in lower grades, we are pleased to inform that a
minimum raise of PKR 8,000 for 3 raters, PKR 9,000 for 4 raters and PKR 10,000 for 5 raters
have been ensured in comparison with previous years rates of PKR 3,000 for 3 raters, PKR 3,500 for 4
raters and PKR 4,000 for 5 raters.

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 25 Years Celebration Reward:

As we celebrate our 25th Anniversary in 2023, we are pleased to inform that all eligible employees with
minimum 3 rating have been awarded 1 month’s Basic Salary (as of 31st December 2022).

We hope that the above market leading initiatives in our compensation plans will further foster the high
performance culture and ease out the financial difficulties being faced by our employees.

In 2023, we will be confronted with various socio-economic challenges, and to overcome these challenges, we
must firmly stand together, continue to collaborate on our mantra of “One Bank, One Team”, be committed
to our values and always look for opportunities to positively contribute towards finding a better Way Forward.

Umer Mallick Faisal Farooq Khan

Head HR Rewards & Financial Services Chief Human Resources Officer

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