Compensation Benefits & Performance Appraisal

CHAPTER # 6
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 State Bank Pakistan
State Bank 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 State Bank of Pakistan: A.

SALARY STRUCTURE

B.

FRINGE BENEFITS

STAFF LOAN POLICY

FACILITY OF OUTSTANDING DUTY
FACILITY OF BANKS 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

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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

Source: - SBPWEB
(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

Source: - SBPWEB

(Specialized Salary Structure)

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Compensation Benefits & Performance Appraisal

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

Source: - SBPWEB

6.3 Core Benefits (applicable across salary structure)

6.3.1

Medical
Full medical facilities for self, spouse, children and dependent parents
as per bank 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.
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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). The
bank on behalf of the employees free of cost also insures this loan with
out charging of premium from employees.
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)

Su

Life

Insurance

Premium (PKR)

Ass
ure
d
(PK
55,001

R)
1,50

312.5

and

0,00

Above
37,501

0
1,00

208.3

to

0,00

55,000
18,001

0
800,

166.6

to

000

37,500

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Up

to

18,000

6.3.6

600,

125.0

000

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) for the year 2005 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

AMI

49 50

4.5%

47 48

4%

41 46

3%

11 40

2%

0 10

Nil

For Employees in Grades OG-2 to OG-5:

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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

AMI %

A = Outstanding Performers

9%

B+ = Above Average

7%

B = Fully Satisfactory

5%

C = Below Average

1.5%

For OG 7 Employees:
AMI for OG- 7 employees at a uniform rate of 6 %.
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 Bank are paid a one time Performance Bonus@ 3% of
annualized monetized pay

6.3.9

Bank Provided Car

Entitlement (Pakistan assembled)

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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 Banks 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

6.3.11

(900 calls)
(400 calls)

OG.6
OG 3&2.

(600 calls)
(200 calls)

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)

40% Monetised pay in lieu of House Rent Ceiling

b)

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

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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 State Bank of Pakistan. 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 bank record or they can claim payment of
ACC sleeper train fare.
b.

All officers and staff of the bank 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)

The rates of gross Daily Allowance for different categories of employees

are as under:
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Category of Employees
Positions
S-1 to S-3
Non-clerical Staff
S-4 to S-7
Clerical Staff
OG-1 to OG-4
Junior Officer to Deputy
OG-5 to OG-6
OG-7

Director
Joint Director/Director
Executive Director

Gross DA (Rs)
800
1500
2600
3030
3500

Source: - SBPWEB
For official tour of OG-6 and OG-7 bank 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.

Employee

Daily Allowance Entitlement per

No
1
2
3
4

Category
Entry Level
Middle Level
Higher Level
Management Level

day

Rs.2600/=
Rs.3030/=
Rs.3030/=
Rs.3500/=

Source: - SBPWEB
Note:
Employees in Entry Level and Middle Level are entitled to 10% of DA as
conveyance charges.

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Employees in Higher Level and Management Level are entitled to 10% of DA

as conveyance charges or to avail the facility of Bank 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 SBP). In case they avail the hotel facility on SBP 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 Bank 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 completed year of service in the Bank 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.

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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/un-married 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.

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