HR Policies & Procedures Salary, Benefits & Rewards Policy/Procedure Objective: This Policy/Procedure is established, forming an integral part of the Corporate Governance principles of ................, aimed at strengthening its values and long-term strategies. The objective is to have in place a standard procedure for establishing salaries, compensations, benefits and rewards; grades and principles, in order to motivate its employees through a fair and structured payment philosophy and be in line with the labour market. This Policy/Procedure is based on the following principles: Performance maximisation Attracting and retaining talents Aligning remuneration and rewards to the local job market, profitability and sustainable development Internal transparency Hierarchical level and position importance Seniority Performance Outline: Seeking to maximise the values of ................ ltd, this Policy is consistent with the corporate strategy and supports performance-driven culture, which brings the organization’s objectives in line with the stakeholders’ objectives and also motivates employees to continue acting on the Group’s best interest. It addresses all ................ ltd employees. I. Job Grades and respective Salary Ranges & Benefits: The aim is to ensure a remuneration level and benefits, at the market median, using as benchmark compensation of comparable roles in comparable activity and size industries, as it is reflected in salary surveys. An employee's fixed remuneration forms the largest part of his/her total remuneration to such an extent that the employee's standard of living is not determined by the variable remuneration provided. This seeks to ensure that employees do not place greater emphasis on variable remuneration in comparison to their total remuneration. The general elements taken into consideration by defining the above, are: Hierarchical level – as defined in the Organization’s Chart Position’s importance - Higher remuneration is provided to specialised roles, which are of great significance for the company operation and growth. Seniority - When the employee salary reaches the maximum level, it will increase with 2% of the monthly gross salary, after each employment year, and also benefit from flat mass increase, upon Company’s judgement, ie. Inflation or Other. Performance – Performance evaluation results Previous work experiences in other Organizations, of the same level/position covering currently Qualifications - such as; Master’s Degree, Doctorate, Trainings, matching to the employee’s role in the company. Human Resources Department 1 HR Policies & Procedures * The below ranges do not apply for Exceptional Cases, due to the employee being identified as talent in the talent mapping process, cases of exceptional performance and decisions for excessive salary increases made in the past. SALARY/ JOB CLASSIF ICATION GRADE EMPLOYEES CATEGORY MIN MONTHL Y GROSS SALARY ALL MAX MONTHLY GROSS SALARY ALL BENEFITS RANGES OFFERED BY ................ 1,000,000 AVERAGE MONTHL YTH GROSS SALARY ALL 1,250,000 1 Executive CEO 1,500,000 Deputy General Managers 450,000 525,000 600,000 3 Heads of Divisions/Group of Departments 400,000 415,000 430,000 4 1-st Level Department Managers 310,000 345,000 380,000 *Company car up to 3000cc, all expenses of fuel, taxes, maintenance and parking, fully covered * Mobile expenses, unlimited * Mobile Phone Device value fully covered * Lap-top value unlimited * Business Credit Card with limit 2000 Euro * Health insurance coverage up to 200,000 euro * Life insurance coverage up to 200,000 euro *Company car up to 2000cc, all taxes, maintenance and parking, fully covered. Fuel expenses covered up to 30,000 ALL. * Mobile expenses covered up to 20,000 ALL * Mobile Phone Device value covered up to 100,000 ALL * Lap-top value up to 800 euro * Business Credit Card with limit 1000 Euro * Health insurance coverage up to 100,000 euro * Life insurance coverage up to 100,000 euro *Company car up to 2000cc, all taxes, maintenance and parking, fully covered. Fuel expenses covered up to 25,000 ALL. * Mobile expenses covered up to 10,000 ALL * Mobile Phone Device value covered up to 60,000 ALL * Lap-top value up to 800 euro * Business Credit Card with limit 1000 Euro * Health insurance coverage up to 80,000 euro * Life insurance coverage up to 80,000 euro *Company car up to 1800cc, all taxes, maintenance and parking, fully covered. Fuel expenses covered up to 15,000 ALL. * Mobile expenses covered up to 5,000 ALL * Mobile Phone Device value covered up to 60,000 ALL * Lap-top value up to 500 euro * Business Credit Card with limit 1000 Euro * Health insurance coverage up to 80,000 euro * Life insurance coverage up to 80,000 2 Human Resources Department 2 HR Policies & Procedures euro II. 5 2-nd Level Department Managers/Deputy Managers 1 250,000 310,000 370,000 6 High Level Experts, Deputy Managers 2, Unit Managers 240,000 255,000 270,000 7 Senior: Supervisors, Team Leaders 190,000 210,000 230,000 8 Supervisors, Team Leaders 170,000 190,000 210,000 9 Senior Staff, 150,000 160,000 170,000 10 Senior Specialists, 120,000 130,000 140,000 11 Specialists, Coordinators 90,000 105,000 120,000 12 Technical Assistance Staff 1 65,000 77,500 90,000 13 Technical Assistance staff 2 60,000 70,000 80,000 14 Cleaning & Maintenance Staff 1 50,000 57,500 65,000 15 Cleaning & Maintenance Staff 2 45,000 52,500 60,000 " Mobile expenses covered up to 3,000 ALL * Mobile Phone Device value covered up to 40,000 ALL * Lap-top value up to 500 euro * Health insurance coverage up to 50,000 euro * Life insurance coverage up to 50,000 euro * Mobile expenses covered up to 2,000 ALL * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Mobile expenses covered up to 2,000 ALL * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Mobile expenses covered up to 2,000 ALL * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Mobile expenses covered up to 2,000 ALL * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro * Health insurance coverage up to 30,000 euro * Life insurance coverage up to 30,000 euro Other payments: Human Resources Department 3 HR Policies & Procedures Besides the above benefits, for local staff also a Food Allowance is granted, at an amount of 7,000 ALL/month. III. Bonusses and Reward Schemes: a. Bonus for Company’s Annual Revenue: This bonus is paid quarterly, depending on the level of reaching and exceeding the targeted revenue from its activity, ie. production. • • • Annual percentage for employees pertaining to the grades 1-3 is 8% of their annual gross salary Annual percentage for employees pertaining to the grades 4-6 is 5% of their annual gross salary Annual percentage for employees pertaining to the grades 7-16 is 3% of their annual gross salary b. Bonus for KPI-s fulfillment: Each department has its KPI-s which are respectively linked to the duties and responsibilities of each position, and evaluated through the Annual Performance Appraisal process. After the completion of the performance appraisal process, the employees who have been evaluated with the grade 3 and above, for each of the 3 core KPI-s/objectives assigned at the beginning of the evaluation year, by the supervisors, will have an annual bonus varying from 30%-50% (depending on the average grade of the 3 main objectives, evaluation) of his/her monthly gross salary. c. Reward Schemes for specific departments/positions targeted campaigns: These kinds of bonuses are paid upon reaching and exceeding targets of specific campaigns, which involve specific departments and/or positions. • • When the entire Unit/Department is involved in the scheme, the bonus is split equally among all staff, including its manager/supervisor. When one or some employees are involved, they will obtain separate bonuses and the manager/supervisor will obtain a bonus at the range of 5-20% (depending on the number of employees involved) of the employee/’s bonus. In both cases, schemes and bonus amounts/percentages are defined on case by case basis, according to the campaign’s specifics. d. Funding of Long-Term studies: In the framework of the Company’s objective to provide development opportunities to its people, ................ ltd can fund up to 100% of the cost for employee participation in long-term educational programs, such as Bachelor’s & Master’s Degrees, or other similar educational programs. The main prerequisites in order for an employee to be entitled to apply for long-term program funding, are: • • • • • • Years of service of the employee within the Company should be at least 3 of uninterrupted employment as permanent staff (full-time/indefinite period contract). The performance assessments over the past years and general employment history should be satisfying. The quality of the programs offered by the institution where the employee wishes to study should be of a recognized stature, within the country. The content of the selected program must be directly related to the employee’s role in the company. The hourly program of the selected course may not coincide with the working hours. The employee should be already accepted in the program of interest. Human Resources Department 4 HR Policies & Procedures The above list of bonusses and rewards is not exclusive. Each time that the Upper Management will consider to apply an additional element and/or change features of the existing ones, a separate decision will be made, as an extension to this Policy. Identity: o Policy Owner: Human Resources Department o Reviewed by: CEO/Deputy General Manager, GD&CEO’s Advisor, Deputy General Directors, Compliance Director o Approved by: CEO & Managing Director o Approval Date: _____________ (To be reviewed every 2 years, following salary survey results) Forms & Documents: o o o o o o o Company Cars Policy/Procedure Lap-Tops Policy/Procedure Mobile Phones Policy/Procedure Business Credit Cards Policy/Procedure Funding of Long-Term Studies Policy/Procedure Staff Motivational Tools All staff Positions, Salaries and Benefits, Ranging Procedure and related content, Communication Method: Confidential Document for HR and Upper Management use, only. Human Resources Department 5