Performance Bonus Policy

PURPOSE

The policy aims to establish related to performance based remuneration, recognise employees who significantly contribute to the results and perform according to expectations, reward employees accurately & fairly according to their performance and improve employee morale, motivation & productivity.

Scope

All permanent employees and project based employees are eligible performance based bonus except daily wages.

Definition

Project based Employee: A project based employee is whose employment has been fixed for a specific project

Policy

1. Annual Performance Based Bonus
   • Performance bonus is paid employees based on achievement of Business Unit's profit and individual performance.
   • Main Board must allow the bonus percentage in approved business plan.
   • A performance bonus is typically awarded after performance appraisal process.
   • Nomination and Remuneration Committee is in charge of taking decision on bonus.
   • Employees who have at least six (6) months service by last date of financial year must entitle prorated amount.
   • Employees who meet overall performance Grade B (Good), A (Very Good) and A+ (Excellent) on their final appraisal for past year must entitle bonus based on individuals' performance grade, refer to Performance Management Policy (HRPP-PM-002).
   • Employees who worked until last date of financial year and have completed fully one year's service must entitle for bonus.
   • If an. employee who worked Business Unit for the whole respective financial year and was transferred to another business unit according to Main Board's decision, employee is entitled bonus from former Business Unit.
   • If an employee is transferred from one Business Unit to another within the financial year according to Main Board's decision,
     • For transferred employee who has at least six (6) months service in respective financial year must entitle prorated amount of bonus based on employee's performance result and financial performance during employee service period.
     • For transferred employee who has at least three (3) months service but not has (6) months service in respective financial year can be determined to pay prorated amount of bonus by Nomination and Remuneration Committee based on employee's performance result and business unit's financial performance during employee service period.
   • Cost sharing employees must entitle bonus of related business units/functions as per cost sharing ratio.
   • Nomination and Remuneration Committee can review and decide to pay bonus if the employees have paid back to the company whatever cost associated for the damage of tools and equipment because of neglecting or mishandling.
   • Bonus is not eligible to employees who have active second written warning due to violation of company rules & regulation.
2. Project Based Bonus
   • At any time of financial year, permanent employees and project-based employee must entitle bonus for at least 6 months period projects based on achievement of profit for related projects, individual performance and timely' project completion.
   • Main Board must allow the bonus percentage in approved project plan.
   • A project bonus is typically awarded after performance appraisal process.
   • Nomination and Remuneration Committee is in charge of taking decision on bonus.
   • Head of business unit must set percentage of workload and cost in related 12,...J. projects for employees and allow bonus as per cost sharing ratio.
   • Employees who have at least six (6) months service by last date of financial year must entitle prorated amount.
   • Employees who meet overall performance Grade B (Good), A (Very Good) and A+ (Excellent) on their final appraisal for after completion of project (at least six months period projects) and yearly appraisal (one year and above project) must entitle bonus based on individuals' performance grade, refer to Performance Management Policy (HR-PP-PM-002).
   • If an employee is transferred one project to another in same business unit according to Head of Business Unit's decision, Business Unit's Nomination and Remuneration Committee can determine to pay portion of bonus amount for related project to employee who worked for project at least three (3) months.
   • Project based employees who are employed till completion related projects are eligible bonus.
   • Nomination and Remuneration Committee can review and decide to pay bonus if the employees have paid back to the company whatever cost associated for the damage of tools and equipment because of neglecting or mishandling.
   • Bonus is not eligible to employees who have active second written warning due to violation of company rules & regulation.

Procedures

• Main Board will allow bonus percentage in approved business plan and project plan.
• Performance of each employee is evaluated; refer to Performance Management Policy (HR-PP-PM-002).
• Human Resources Department (HRD) and Finance Department will allocate and propose bonus amount for individual based on performance grade.
• Business Unit's Head will review individual bonus allocation.
• Nomination and Remuneration Committee will approve bonus allocation.
• Bonus will be calculated by HRD and checked by Finance Department.
• HRD will issue announcement letter of bonus to employees.
• Finance Department will arrange for paying bonus on time.

Delegation of Authority (DOA)