Compensation Structure

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1 Compensation Structure We offer compensation structure that is: Competitive in the industry Simple to understand and flexible to administer Uniform across the organization In line with internal as well as external equity. The remuneration packages are systematically provided according to the grades as below. Grades Designation M-1 Senior Vice President M-2 Vice President M-2A Sr. General Manager M-3 General Manager M-4 Deputy General Manager M-5 Senior Manager M-6 Manager M-7 Deputy Manager M-8 Senior Executive M-9 Executive M-10 Officer 1.Primary Salary The Primary salary Comprises of Basic Salary, Variable Dearness Allowance, Fix Dearness Allowance, Personal Allowance and High Cost Allowance (wherever applicable). The primary Salary shall reflect in the salary slip every month. These components have consequential impact on Provident Fund, Gratuity, Supperannuation and Personal Accident (wherever applicable) A. Basic Salary Each executive is placed at a Basic Salary in the running scale.

2 B. Variable Dearness Allowance ( VDA) / DA / FIXED DA Variable Dearness Allowance (VDA) is reviewed and revised at every quarter based on the Customer Price Index (CPI) to keep pace with inflation. Dearness Allowance (DA) is reviewed and revised at every month based on the Customer Price Index (CPI) to keep pace with inflation. Fixed Dearness Allowance (DA) is reviewed and revised on year based on the - Worker s settlement. C. Personal Allowance Personal Allowance is directly linked with Basic 10% D. High Cost Allowances High Cost Allowances is payable to Senior Executive, Executive and Officers (M-8 to M- 10) 2. Allowances A. House Rent Allowance We pay HRA along with monthly salary. For executives the rate of house rent allowance is based on certain % of the basic salary subject to a specific limit. The rate of percentage varies in terms of its applicability to different Grades. B. Professional Pursuit Allowances The executive in Management Grades (M-1 to M-10) are eligible the Professional Pursuit Allowance subject to a maximum limit Rs.5000 and executives below M-5 are eligible the Professional Pursuit Allowance subject to a limit of Rs C. Vacation allowance / Leave Travel Concession (LTC). All confirmed executives are eligible to claim LTC. Employees who wish to avail the annual LTC benefits ( under non-taxable income), should remain on leave for minimum 5 days and to submit the relevant documents to support the claim. D. Bonus/Ex-gratia Bonus forms a part of the total salary brack-up of an employee. Employees getting monthly primary salary ( Basic + VDA+ Fix Dearness Allowance + Personal Allowance + HCA ( wherever applicable) less than Rs. 3,500/ are eligible for bonus under the

3 provision of the payment of Bonus Act. Other employees who are not falling under this criteria are entitled for Bonus & Ex-Gratia payment as per their respective position. E. Education Allowance Education allowance is paid to all permanent employees and this will reflect in the salary slip every month. F. Uniform Allowance The executives in Management Grade shall be eligible for purchase/ maintenance of uniform during the performance of duties on monthly basis. For claiming this, the executives have to submit a declaration once in a year This shall reflect in the salary slip every month. G. Helper Allowance. The executives in Management Grade (M4 and Above), those who are allotted company vehicles shall be eligible for Helper Allowance. For claiming this, the executives have to submit a declaration once in a year (i.e. in February). This allowance shall also reflect in the salary slip every month. H. Vacation allowance / Medical allowance. These allowances are paid to Workers/HO Staff / Field Staff employees and these will reflect in the salary slip every month. 3. Reimbursements: Reimbursements such as Vehicle Maintenance and Medical are reimbursed by way of submission of necessary declarations / supporting. A. Vehicle Maintenance: This component is reimbursed monthly subject to certain specified limit for different level of executives applicable. (Sr. Managers and above i.e M5 to M1) B. Medical Expense: All the confirmed executives are eligible for this reimbursement quarterly. The employees get this benefit up to a fixed ceiling applicable to different grade of the employees D. Free Meal Coupons The executives, who are in Sr. Executive and above grade are eligible for Sodexo Passes. These passes are issued on quarterly basis in advance. 4. Life Style Allowance (for Top Management).

4 In Life Style Allowances, we have included the following: Electricity Charges. House Maintenance. Hard and Soft Furnishing Utilities. Family Welfare. Higher Education. These are subject to income tax laws. 5. Retiral Benefits A. Provident Fund Under the provision of the Provident Fund Act 12% of the Primary Salary (Basic + VDA+Fix Dearness Allowance + Personal Allowance + HCA) is deducted from the salary of the executives and deposited in their respective P.F account and similarly the company s contribution is deposited in Provident Fund as well as Pension Fund. B. Gratuity Gratuity is payable under the provisions of the payment of Gratuity Act to an employee on separation from the company due to any of the following reasons: a. Reaching age of Superannuation b. Resignation c. Death or disablement due to accident or disease. All employees become eligible to be covered under the scheme. However, only those who complete 5 years of continuous service in the company will be eligible to receive gratuity at rate of 15 days salary for every completed years of services. Medical Facilities: Mediclaim insurance The New India Assurance Company administers this policy. The policy covers reimbursement of Hospitalization expenses only for illness / disease contracted or injury sustained by the insured person. This policy shall cover self, spouse and two dependant

5 children. The form for the same shall be forwarded to you by HR team member within one week of your joining the organization. Employee deposit linked insurance (EDLI) All the members of the P.F. Scheme automatically become the members of the EDLI Scheme also, for which the contribution is solely made by the Management. The Company has taken out a policy with L.I.C., wherein nominee of the deceased employee will be eligible for an amount of EDLI benefit which shall be proportionate to the Salary last drawn by the employee and the no. of years of service put in. Employee State Insurance Scheme All executives having total salary less than Rs /- per month are eligible to take advantage of various benefits under the scheme as per the provisions of the Employees state Insurance Scheme. Personal accident insurance This is applicable to the employees, who are not covered under ESI. The insurance claim cannot be made in case of death or bodily injury resulting into Temporary disablement, permanent total disablement. The accident should have been caused by visible means & should be purely fortuitous in nature. Accidental deaths are also covered under P.C.I. Whenever any employee meets with an accident he should immediately report the happening to the Departmental Head by filling the accident report. The Departmental Head shall inurn inform the COMPANY AFFAIRS DEPARTMENT within 72 hours. In case of an employee posted outside Ahmedabad, claim intimation should reach the concerned department within 7 days. GRADE DESIGNATION (FIELD STAFF) :- FIELD STAFF (HO) TBO F65 Trainee Business Officer PBO F64 Probationary Business Officer BO F 61 Business Officer SBO F59 Senior Business Officer FIELD EXECUTIVES (HO) BDM F51 Business Development Manager Sr.RBM F53 Sr. Regional Business Manager RBM F54 Regional Business Manager TBM F55 Territory Business Manager ABM F56 Area Business Officer COSMETICS SR F63 Sales Representative

6 Sr.SR F62 Senior Sales Representative SO F61 Sales Officer ASE F57 Area Sales Executives ASM F55 Area Sales Manager RSM F54 Regional Sales Manager LEAVE STRUCTURE 1. STAFF & EXECUTIVES PL - Privilege Leaves Staff and executives are eligible for 30 days PL per annum. The maximum accumulation of PL is eligible upto 120 days. After 120 days if any leave is accumulated, is encashed at the end of the year. The staff or executive is eligible for PL if their physical presence is of 240 days. CL - Casual Leaves 7 days of CL per annum is eligible. CL can neither be encashed nor accumulated beyond the financial year nor more than 3days of CL can be availed at a time. CL can not be combined with SL or PL. SL - Seek Leaves Eligibility of SL is of 7days per annum. They can accumulate maximum 120 days of SL. These leaves can not be encashed. If the leaves are balanced greater than 120 days then SL will lapse. In case they avail leave for 3 consecutive days they are required to submit medical certificate. In case of prolonged illness SL can be combined with PL. 2. FIELD STAFF # TBO, BO, PBO, SBO,Mngt.Trainee LWP - Leave Without Pay When a person is on the training period (TBO) then he get leave without pay. Means he does not get salary of the leave. After he get the leaves when promoted to PBO. PL PL is calculated on the basis of following formula :- PL = Total working days / 11 per annum. Here, Total working days = Working days - Sundays - Holidays - Leaves Maximum limit of PL balance is 180 days. After that limit your PL will lapse.

7 In special case of retirement or resignation PL will encashed upto maximum limit of 120 days. CL Eligibility is upto 15 days per annum. SL SL is calculated on the basis of following formula ;- SL = Total working days / 36 per annum. SL can be accumulated upto any limit but it can not be encashed. # ABM, Sr. ABM, TBM, RBM, DBM LWP LWP is as above. PL Eligibility for PL is 30 days per annum. Maximum limit of balance of PL is 90 days. And the further procedure is as above. CL Eligibility of CL is 7 days per annum. SL Eligibility of SL is 7 days per annum. 3. WORKER / PEON PL They get 1 PL per 16 days of work. The maximum balance they can carry is of 30 days. After that all PL's are encashed. CL The eligibility for CL is 9 days per annum. If 1 CL is remaining or unused then worker/peon get encashment of 1 CL. But if more than 1 CL is there in the balance then the worker or peon get the no. of leaves (more than one -whatever) plus 2 CL's (fixed) encashment. SL They are entitled to 6 days of SL per annum.

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