compensation-system-of-dbl-amp-ucbl

1. HRM-370
Compensation System of DBL & UCBL
05 December, 2010 Mr. Monzoor Morshed Lecturer School of Business Independent
University, Bangladesh Subject: Letter of transmittal Sir, It is great pleasure
to submit a report on  Compensation System of an Organization Operating in
Bangladesh" as the fulfillment of the partial requirement of BBA program. This
report is done to find how compensation system operating in Bangladesh. We are
working on bank we find how employee get compensation. This report has helped me
to find those employees are happy with their compensation. We sincerely hope
that you will enjoy reading this report as much as we enjoyed it writing. If you
need any further clarification interpreting our analysis please feel free to
ask. Sincerely Md. Ahsanul Hoque Ms. Nargis Saba Rani Ms. Rounak Ashrafi Ms.
Alimoon Ara Mr. Md.Fazle Sobhan Chowdhury Ms. Jannatul Ferdous Ms. Shameema
Akter Sathi ID#0820023 ID#0710210 ID#0820533 ID#0720302 ID#0620326 ID#0820519
ID#0820693 ____________________ ____________________ ____________________
____________________ ____________________ ____________________
____________________
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2. HRM-370
Compensation System of DBL & UCBL
Acknowledgement
We would like to thank Mr. Monzoor Morshed our faculty who has supported us,
assisted us and guided us through the preparation of this report. He has been
patient and understanding of all our queries and problems, and we are very
grateful to him for his help. We would also like to thank all the employees of
Dhaka Bank Limited and United Commercial Bank Ltd. They have been very helpful
throughout the preparation of the report & responding to all our queries.
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3. HRM-370
Compensation System of DBL & UCBL
Executive Summary
Since   Dhaka Bank Limited  and  United Commercial Bank Ltd  are the
leading Banks in the bank business and are efficiently broadening their horizon,
we thought it would be interesting to know about their practices and their
strategies which they apply in their day to day activities in controlling the
compensation system and human resource and also planning policies to reach the
goals in time.   Dhaka Bank Limited  and  United Commercial Bank Ltd 
follows stable compensation system, for this reason  Dhaka Bank Limited  and
 United Commercial Bank Ltd  goes for long term planning, also the
strategies  Dhaka Bank Limited  and  United Commercial Bank Ltd 
followed in their Human Resource Planning is flexibility. We know in
compensation system Human Resource planning organization go for reactive HRP. As
we know  Dhaka Bank Limited  and  United Commercial Bank Ltd  is in now
Growth stages. To estimate future demand and supply of employees  Dhaka Bank
Limited  and  United Commercial Bank Ltd  use Managerial Judgment. To
forecasting the internal supply of employees they used their own software which
is HRIS. For external supply how employees they take fresh University Graduates.
Banks maintains 100% privacy to their employee s personal information.
 Dhaka Bank Limited  and  United Commercial Bank Ltd  is now growth
stage Company. So, their business has expended dramatically. For that reasons
they never face the situation like employee s surplus.  Dhaka Bank
Limited  and  United Commercial Bank Ltd  sometimes faces labor shortage
problem. In that situation the company go for hire temporary employees and
employees are given overtimes. In the case of compensation system they follow
all the process like at first they make a plan then develop a strategy after
that they go for searching and screening at last the evaluate the whole
compensation system process. For this analysis we, focused on the compensation
system practiced by two private banks of Bangladesh.
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4. HRM-370
Compensation System of DBL & UCBL
Table of Contents
1.
INTRODUCTION ...................................................................
...................................................................... 6 1.1
Background of the
Study ..........................................................................
.......................................... 6 1.2 Objectives of the
Study ..........................................................................
............................................. 6 1.2.1 to discover the Practice
of Compensation System in the selected
organization ........................................ 6 1.2.2 to relate
classroom study with that of real life
situation ......................................................................
.... 7 1.3 Scope of the
Study ..........................................................................
..................................................... 7 1.4
Methodology ....................................................................
................................................................... 8 1.5
Limitations ....................................................................
...................................................................... 9 2.
Brief
Discussion .....................................................................
................................................................ 10 2.1 AN
OVERVIEW OF BANKING SECTOR IN
BANGLADESH .................................................... 11 2.1.1
Bangladesh
Bank............................................................................
..................................................... 11 2.1.2 Specialized Banks
................................................................................
............................................... 11 2.1.3 Nationalized
Banks ..........................................................................
................................................... 12 2.1.4 Private Commercial
Banks ..........................................................................
........................................ 13 2.1.5 Foreign Commercial
Banks ..........................................................................
....................................... 13 3. THE SEGMENTS OF PAY
COMPONENTS .....................................................................
......................... 14 3.1 MONTHLY GUARANTEED
CASH ...........................................................................
........................... 14 3.2 ANNUAL GUARANTEED
CASH ...........................................................................
............................... 15 3.3 ANNUAL VARIABLE
CASH ...........................................................................
...................................... 15 3.4 TERMINAL
BENEFITS .......................................................................
.................................................. 16 3.5 MONTHLY COST OF
BENEFITS........................................................................
................................. 16 3.6 Fringe
Benefits .......................................................................
.................................................................. 18 RETIREMENT
RELATED ........................................................................
......................................................... 18 INSURANCE
RELATED ........................................................................
........................................................... 18 PAYMENT FOR TIME
NOT
WORKED .........................................................................
................................... 18
OTHERS..........................................................................
................................................................................
... 18 4. Dhaka Bank

5. Limited ........................................................................
....................................................... 19 4.1 Background of
Dhaka Bank Limited
(DBL) ..........................................................................
................. 19 4.2 Mission &
Vision .........................................................................
............................................................. 19 4.2.1 Goals of
the
Bank ...........................................................................
..................................................... 20 4.2.2
Values..........................................................................
....................................................................... 20 4.3
Management
Committee ......................................................................
.................................................... 20 4.4 Total Compensation
and Benefits Package of
DBL.............................................................................
.... 23 4.4.1
Objectives .....................................................................
...................................................................... 23 4.4.2
Salary
Structure.......................................................................
............................................................ 23 4.4.3 Revision
of Pay
Elements .......................................................................
............................................. 23 4.4.4 Employee Compensation
Records ........................................................................
................................ 23 4.5 Basic Employee Benefits for Permanent
Employees ......................................................................
......... 24 4.5.1 Provident
Fund ...........................................................................
......................................................... 24 4.5.2 Group Term
Life
Insurance ......................................................................
........................................... 24 4.6
Bonuses.........................................................................
............................................................................ 25
4.7 Meal
Facilities .....................................................................
..................................................................... 25 4.7.1
Branches .......................................................................
...................................................................... 25 4.7.2
Head
Office:.........................................................................
............................................................... 26
Executives: ....................................................................
................................................................................
..... 26 4.8
Accommodation ..................................................................
..................................................................... 26 4.9
Utilities
Allowances .....................................................................
............................................................. 26 Executives
between grades J to
M4:.............................................................................
..................................... 26 Executives of grades M5 and
above: .........................................................................
........................................ 26 4.10 Medical
Benefits .......................................................................
.............................................................. 27 4.10.1 Medical
Benefits for the Executive
Staff ..........................................................................
.................. 27 4.11 Transportation Facilities and Car Purchase
Scheme .........................................................................

6. ... 28 4.11.1 Transportation Facilities for the
Executives .....................................................................
................... 28 DBL
Branches: ......................................................................
............................................................................ 28
Head
Office:.........................................................................
..............................................................................
28 Top
Executives......................................................................
............................................................................. 32
4.12 Leave
Entitlements....................................................................
............................................................. 32
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Compensation System of DBL & UCBL
4.12.1 Basic Leave
Types ..........................................................................
.................................................. 32 4.12.2 Definitions of
Basic Leave
Entitlements....................................................................
......................... 33 4.13 Other Leave
Options ........................................................................
...................................................... 34 4.13.1 Maternity Leave
................................................................................
................................................ 35 4.13.2 Study
Leave ..........................................................................
............................................................ 35 4.13.3 Hajj
Leave ..........................................................................
............................................................... 35 4.13.4
Special
Leave ..........................................................................
.......................................................... 35 4.13.5 Leave
Encashment......................................................................
....................................................... 36 4.13.6 Maintenance of
Leave
Records ........................................................................
.................................. 36 4.14 Financial Assistance
Schemes ........................................................................
........................................ 36 4.14.1
Objectives .....................................................................
.................................................................... 36 4.14.2
Priorities for Loan against Provident Fund (PF) or Salary
Advance .................................................... 36 4.14.3 Loan
against Provident Fund (PF) or Salary Advance Eligibility and
Limits ....................................... 37 4.14.4 Repayment of Loan or
Salary
Advance ........................................................................
...................... 38 4.14.5 Procedures to Apply and Processing of a Loan or
Salary Advance Request ......................................... 39 5. United
Commercial Bank
Ltd.............................................................................
..................................... 40 5.1 Background of United Commercial
Bank Ltd
(UCBL) .........................................................................
. 40 5.2 Mission
Statement ......................................................................
.............................................................. 40 5.3
Management......................................................................
....................................................................... 40
SENIOR
MANAGEMENT .....................................................................
...................................................... 40 5.4 Total Compensation
and Benefits Package of
UCBL ...........................................................................
... 42 5.4.1
Objectives .....................................................................
...................................................................... 42 5.4.2
Salary
Structure.......................................................................
............................................................ 42 5.4.3 Revision
of Pay
Elements .......................................................................
............................................. 42 5.4.4 Employee Compensation
Records ........................................................................
................................ 42 5.5 Basic Employee Benefits for Permanent

8. Employees ......................................................................
......... 43 5.5.1 Provident
Fund............................................................................
........................................................ 43 5.5.2
Bonuses ........................................................................
...................................................................... 43 5.5.3
Accommodation ..................................................................
................................................................ 43 5.6
Utilities
Allowances .....................................................................
............................................................. 44 5.7 Mobile
Telephone ......................................................................
............................................................... 44 5.8 Medical
Benefits........................................................................
............................................................... 45 5.9 Car
Purchase
Scheme .........................................................................
..................................................... 45 5.10 Leave
Entitlements....................................................................
............................................................. 45 5.10.1 Basic
Leave
Types ..........................................................................
.................................................. 45 5.10.2 Definitions of
Basic Leave
Entitlements....................................................................
......................... 46 6.
CONCLUSION .....................................................................
...................................................................... 48 7.
Appendix .......................................................................
..............................................................................
49 8.
REFERENCES .....................................................................
....................................................................... 53
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9. HRM-370
Compensation System of DBL & UCBL
1.
1.1
INTRODUCTION
Background of the Study
During the late nineties the banking sector of Bangladesh saw a sudden shift of
expansion as the government approved operation of a good number of new Private
and Foreign Commercial Banks. This expansion irresistibly brought in greater
benefits to the consumers because of the highly competitive market condition.
The period has seen emergence of some dynamic and high-tech banking services of
which our consumers were deprived of. This new era of banking services include:
One Stop Utility Service Automated Teller Machine Phone Banking Credit Card On-
line Banking Syndicated loan But these advancements in banking technology
didn t solely benefit the customers. It brought greater challenge in parts of
the employees or bankers who were designated with high profile jobs with tougher
goals to meet, a dynamic career with attractive remuneration, greater benefits
and stunning status. This report will take an attempt to study the career
private commercial banks of our country through the evaluation of the employee
maintenance functions as practiced in this sector.
1.2
Objectives of the Study
1.2.1 to discover the Practice of Compensation System in the selected
organization
In contrast to theories, many business firms of Bangladesh have the least or
even no exposure to one of the crucial areas of business - Human Resource
Management. But since every organization is made up of people, compensating
them, acquiring their services, developing their skills, motivating them to high
levels of performance, and ensuring that they continue to
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Compensation System of DBL & UCBL
maintain their commitment to the organization are essential to achieving
organizational objectives. We will find out how management in the selected
organizations is dealing with compensation system mainly.
1.2.2 to relate classroom study with that of real life situation
Real life business is far more different from our classroom studies. Sometimes
the books we read are the oversimplification of facts and most of the time
actual practices don t match with the theories written in books. So our
objective is to relate our classroom studies with real life scenario and get a
clear view of what actually is happening in the area of Human Resource
Management of the selected banks.
1.3
Scope of the Study
Although we hear people saying that they do not care for money but they do care
for the feeling of belongingness to their organization it goes without saying
that money is a major motivator. It is through compensation by which a
relatively effective and satisfied working force is sustained. The maintenance
of employee co-operation is largely dependent upon the answers of following
questions:  Whether the company s compensation rates are better than those
of the segment market?     What indirect plans of compensation are
commonly used in the organization? What specific plans are available from which
to choose? What benefits, incentives and rewards are provided? Whether these
policies are transparent to the employees and practiced without any distortion?
We have basically judged the organizations on the basis of the above criteria.
The report will first focus on the overall banking sector of our country trying
to describe, note and list the banks currently operating in our country. As it
is beyond our scope to focus on each and every bank, we have chosen two PCBs
(Private Commercial Banks) - one from the first generation and the other from
the second generation. Because of the request of the authority for anonymity we
will describe the two banks as Dhaka Bank Limited and United Commercial Bank
Ltd. respectively.
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11. HRM-370
Compensation System of DBL & UCBL
In this report, we have covered the different aspects of human resource
maintenance functions. Since the reward system of an organization is the primary
maintenance tool in human resource management area, we have specifically focused
our discussion on this area. Definitely there is a difference between the
maintenance functions of Foreign and Local commercial banks. We will try to find
out if there is any such difference and if any, what are these differences. The
reward system includes both intrinsic and extrinsic rewards. But intrinsic
rewards are completely qualitative and very hard to measure. It requires a lot
of research work. So we have excluded intrinsic rewards from our discussion. Our
discussion will be about the extrinsic rewards both monetary and non-monetary.
We will discuss about the base salary, incentives and benefits under the
monetary rewards. We will also try to find out what non-monetary rewards are
given in the selected organizations. The report will thus gather information,
classify them and eventually lead to the comparison between the two strongest
banking sectors of Bangladesh.
1.4
Methodology
In order to supplement our theoretical knowledge in Human Resource Management
with practical exposure, we contacted different organizations and collected data
regarding real life scenario. The content of this report is thought to be quite
confidential with the organizations. So, we had to spend a long time to convince
the human resource managers of our selected organizations to help us. We had to
convince them about the fact that this report is totally for internal purpose to
supplement our theoretical knowledge. However, the method of collecting
information was basically an interview type. Since the data regarding salaries
are considered confidential we did not have access to any written material. We
arranged appointments with the human resource personnel and employees in our
selected organizations and interviewed them. We asked them about their
compensation system, salary ranges and the basis of allocating incentive. Thus
we gathered our required information. To find out the compensation system of an
organization we select two companies (BANK) one is Dhaka Bank Limited and
another one is United Commercial Bank. The office held on Dhaka and so many
places. Data used in this study were collected from the following source
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Compensation System of DBL & UCBL
Primary source    face to face interview survey using questionnaires
personal observation while visiting the company
Data collection Employee were interviewed through structured questionnaire in
different outlets Designing questionnaire Structured questionnaires have been
used for this study in with multiple choice and open ended question. Secondary
data    annual report internet newspaper
1.5
Limitations
The limitations are:  Since maintenance function entails a vast area it was
beyond our scope to describe and investigate each and every topic though we
tried to cover all the important aspects to make our report a comprehensive one.
 The management of our selected organizations was somewhat reluctant to
reveal all the information about their policies. They did not particularly
provide the amount of salaries or the policies to give incentives.   The
hierarchies of the selected banks are so different that it is very difficult to
find out the same level positions and compare their salary ranges. Moreover,
there are some qualitative aspects such as job security, work environment, peer
relationships, relationship with the supervisors, reputation of the company,
which play important role in maintaining the productivity of employees. These
pictures are not painted in this report as it relates to the utilization phase
of personnel management and therefore beyond scope of this report.
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Compensation System of DBL & UCBL
2.
Brief Discussion
Compensation is a systematic approach to provide monetary value to employees in
exchange of work performed. Compensation may achieve several purposes assisting
in recruitment, job performance, and job satisfaction. Compensation may be used
to:       Recruit and retain qualified employees. Increase or
maintain morale/satisfaction. Reward and encourage peak performance. Achieve
internal and external equity. Reduce turnover and encourage company loyalty.
Modify (through negotiations) practices of unions.
Compensation will be perceived by employees as fair if the approach is based on
systematic components. Various compensation systems have developed to determine
the value of positions. These systems utilize many similar components including
job descriptions, salary ranges/structures, and written procedures.
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Compensation System of DBL & UCBL
2.1
AN OVERVIEW OF BANKING SECTOR IN BANGLADESH
The Banking Industry in Bangladesh is a complex and competitive one. The sector
can be diagramed as follows: The sector can be diagramed as follows:
Bangladesh Bank
Specialized Banks
Commercial Banks
Non-Banking Financial Institutions
Nationalized Banks
Private Commercial Banks
Foreign Banks
A brief description of each of the groups is noted here:
2.1.1 Bangladesh Bank
Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory
authority in the sector. The banking system consists of four nationalized
commercial Banks, around forty private commercial banks, nine foreign
multinational banks and some specialized banks. The ministry of Finance in
association with Bangladesh bank regulates the banking sector through monetary
and fiscal policies whereas banks are operating under guidelines set by
Bangladesh Bank.
2.1.2 Specialized Banks
These banks basically are specialized micro-finance institution, which
revolutionized the concept of micro-credit and contributed greatly towards
poverty reduction and the empowerment of women in Bangladesh.
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Compensation System of DBL & UCBL
The Nobel-prize winning Grameen Bank is a specialized micro-finance institution,
which revolutionized the concept of micro-credit and contributed greatly towards
poverty reduction and the empowerment of women in Bangladesh. Out of the
specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank)
were created to meet the credit needs of the agricultural sector while the other
two ( Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa Rin Sangtha (BSRS) are
for extending term loans to the industrial sector. The Specialized banks are:
       
Grameen Bank Bangladesh Krishi Bank Bangladesh Shilpa Bank Rajshahi Krishi
Unnayan Bank Bangladesh Shilpa Rin Sangstha Basic Bank Ltd (Bank of Small
Industries and Commerce) Bangladesh Somobay Bank Limited(Cooperative Bank) The
Dhaka Mercantile Co-operative Bank Limited (DMCBL)
2.1.3 Nationalized Banks
The banking system of Bangladesh is dominated by the 4 Nationalized Commercial
Banks, which together controlled more than 50%-55% of deposits. The nationalized
commercial banks are:
   
Sonali Bank Janata Bank Agrani Bank Rupali Bank
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Compensation System of DBL & UCBL
2.1.4 Private Commercial Banks
Private Banks are the highest growth sector due to the dismal performances of
government banks (above). They tend to offer better service and products.
ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚· ï‚·
AB Bank Limited BRAC Bank Limited Dutch Bangla Bank Limited Dhaka Bank Limited
Islami Bank Bangladesh Ltd IFIC Bank Limited United Commercial Bank Limited NCC
Bank Limited Prime Bank Limited Exim Bank Limited Bank Asia Limited Trust Bank
Limited and many more
2.1.5 Foreign Commercial Banks
ï‚· ï‚· ï‚· ï‚· ï‚· ï‚·
Citigroup HSBC Standard Chartered Bank Commercial Bank of Ceylon State Bank of
India National Bank of Pakistan and many more
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Compensation System of DBL & UCBL
3.
THE SEGMENTS OF PAY COMPONENTS
To evaluate the various components of the total compensation package, the values
of non-cash perquisites and benefits have been monetized at current market
rates. While computing Annual Guaranteed Cash, items like Performance Bonus,
which is variable, and Terminal Payments have not been taken into account though
these have been considered for the purpose of Annual Cost to the Company. The
compensation package has been divided into five segments: ï‚· ï‚· ï‚· ï‚· ï‚·
Monthly Guaranteed Cash Annual Guaranteed Cash. Annual Variable Cash Terminal
Payments Monthly Cost of Benefits
3.1 MONTHLY GUARANTEED CASH
~ Basic Salary
Actual average basic salary of the benchmarks has been taken. No employer agrees
to provide actual individual salary for the benchmark jobs as this is
confidential between the employer and the employee. Where a job is held by one
person, the individualâ‚‚s actual salary has been shown. Where 2/3 benchmark
jobs fall under one grade, actual average of that grade has been taken. Where
actual average has not been available, the meaningful point of the salary range,
applicable to the job grades of the benchmark has been taken. ~ taken. ~ ~ ~
Domestic Aidâ‚‚s Wage Utilities / Maintenance Transport Allowance Specific
amounts paid in cash for each matched job have been taken. Specific amounts paid
as cash allowance have been taken. House Rent Allowance Specific amounts or
percentage of basic salary paid in cash for each matched job have been
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Compensation System of DBL & UCBL
Specific amounts paid in cash for each matched job have been taken. ~ ~ Medical
Allowance Personal / Special / Other Allowance A specific amount paid in cash
has been used. Specific amounts paid in cash as allowances have been utilized.
Quite a few costs are lumped into this and paid in cash. With reduction of
personal tax slabs, employers are opting for a more transparent pay system
conforming to the tax regulations. ~ ~ Meal Allowance Children Education
Allowance Specific amounts paid in cash as allowance have been used. Specific
amount paid in cash has been used.
3.2 ANNUAL GUARANTEED CASH
~ used. ~ ~ Festival Bonus Leave Fare Assistance Actual amount paid under this
head has been used. Actual amounts paid to the employees have been taken. Annual
Bonus
This is a deferred wage not linked to profitability. Actual amount paid under
this head has been
3.3 ANNUAL VARIABLE CASH
~ ï‚· ï‚· ï‚· ~ ~ Performance Bonus Employeeâ‚‚s performance only Combined
performance of the group, business unit and the employee Company performance
Profit Bonus Incentive Bonus
Actual amounts paid have been taken. This is paid by the employers in different
forms based on:
Actual amounts paid, based on company profitability, have been taken.
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Compensation System of DBL & UCBL
SMC pays an incentive bonus to its all its employees. The incentive amount is a
fixed sum for each grade.
3.4 TERMINAL BENEFITS
~ ~ ~ Provident Fund Gratuity Pension Fund
Actual payments made by the employers to the Fund have been used. Actual amounts
provided by the employers in the Books of Accounts have been used. Actual
payments made by the employers to the Fund have been used.
3.5 MONTHLY COST OF BENEFITS
~ ~ Company Leased Accommodation Household Effects (Depreciation)
Actual cost has been taken. This reflects the cost of depreciation on account of
hard and soft furnishing and electrical appliances provided by the comparators.
~ ~ ~ Utilities / Maintenance Telephone Company Car (Depreciation) Costs under
this head have been taken at actual. Actual cost has been taken. Where company
cars are provided for both functional and personal purposes, the figures
mentioned represent the cost of depreciation. ~ ~ Running and Maintenance Cost
Driverâ‚‚s Wages Actual amounts spent for fuel and car maintenance have been
used. Where drivers are Company employees, their actual cost has been taken.
Where Private Driverâ‚‚s wages are paid for, actual amounts paid to the
employees have been taken. ~ Registration / Insurance / Tax Costs of
registration, insurance, tax, etc. have been taken, at actual.
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Compensation System of DBL & UCBL
~ ~ ~ ~ ~ ~ ~ ~ actual. ~ taken.
Pickup-Drop / Transportation Cost Entertainment Allowance Canteen Subsidy
Company Products Club Membership Group Life Insurance Medical Expense
Hospitalization Scheme
Actual cost to the company for pickup-drop facility has been taken. Specific
costs reimbursed have been utilized. Specific costs on account of company
provided subsidized meals have been taken. Specific costs on account of company
products have been taken. The actual amounts paid for by the employers have been
utilized. Actual premium paid by the employers has been used. The average cost
to the employer on account of medical reimbursement has been used, at actual.
Premium paid by the comparators under the Hospitalization Insurance Policies has
been taken at Loan
Amount of interests absorbed by the comparator for utilization of various loan
policies has been
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Compensation System of DBL & UCBL
3.6 Fringe Benefits
Employee benefits, sometimes called fringe benefits, are those rewards that
employees receive for being members of the organization and for their position
in the organization unlike wage, salaries and incentives, benefits are usually
not related to employee performance. The term fringe benefits was coined over 40
years ago by the war labor Board, Reasoning that employer provided benefits such
as paid vacation, holidays and pensions were on the fringe of wages , are agency
exempted them from pay controls. It has been argued that this action, more that
any single event, led to the dramatic expansion of employee benefits that has
since occurred. However, because of the significance of benefits to total
compensation, many employers have dropped the word fringe for fear that it has a
minimizing effect. Following is the list showing the types of benefits that
employees can receive from the company: RETIREMENT RELATED Pension fund Annuity
plan Early retirement Disability retirement Retirement gratuity INSURANCE
RELATED Medical insurance Accident insurance Life insurance Disability insurance
Dental insurance Survivor benefits PAYMENT FOR TIME NOT WORKED Vacation Holidays
Sick leave Military leave Paid rest periods Lunch periods Travel time Company
discounts Meals furnished by company Moving expenses Severance pay Tuition
refunds Credit union Company car Legal service Financial counseling Recreation
facilities OTHERS
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4.
Dhaka Bank Limited
4.1 Background of Dhaka Bank Limited (DBL)
Dhaka Bank Limited (DBL) was incorporated as a Public Limited Company on April
06, 1995 under the Company Act 1994 and started its Commercial Operation on June
05, 1995 as Private Commercial Bank. The Bank started its journey with an
Authorized Capital of Tk.1000.00 Million and Paid up Capital of Tk.100.00
Million. Today it is one of the most renowned Private Commercial Banks having
multiple branches in the major cities of the Country. Dhaka Bank Limited (DBL)
has started its Business with all the features of a Corporate Bank and the
Products of both Corporate and Retail Banking System; to facilitate the daily
clientele requirements. DBL is always trying to improve their Customer Services
in every sector, but in todayâ‚‚s Competitive Business World, Banks need to
offer additional concentration to the Clientsâ‚‚ requirements in order to stay
at the top. Therefore, besides dealing with the general attributes of Different
Products, they have been trying to put more emphasis on the Customer Benefits
and other Customer related Facilities.
4.2 Mission & Vision
The Mission of the Dhaka Bank Limited (DBL) is to be the Premier Financial
Institution in the country providing High Quality Products and Services backed
by Latest Technology and a Team of Highly Motivated Personnel to deliver
Excellence in Banking. â‚‚The stars in the seven skies sparkle in brilliance and
twinkle in blissful beauty. We wonder at them in profound admiration and
speculation. At Dhaka Bank we draw our inspiration from the distant stars. Our
team is committed to assure a standard that makes every banking transaction a
pleasurable experience. Our people, products and processes are aligned to meet
the demand of our discerning customer. Our goal is to achieve a distinction like
the luminaries in the skies. Our prime objective is to deliver a quality that
demonstrates a true reflection of our vision - Excellence in Banking.â‚‚
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4.2.1 Goals of the Bank  Long-term Goal:
To be the Market Leader both in terms of Deposits and good advances among
Private Commercial Banks in Bangladesh by the year 2009.
 Short-term Goal:
To increase Current Market Shares.
 Financial Goal:
To reduce the existing Cost of Fund
4.2.2 Values
ï‚‚ Customer Focus ï‚‚ Integrity ï‚‚ Team Work ï‚‚ Respect for Individual ï‚‚
Quality ï‚‚ Responsible Citizenship
4.3 Management Committee
Mr. Khondker Fazle Rashid Managing Director Mr. Tanweer Rahim Deputy Managing
Director Mr. Kaiser Tamiz Amin Deputy Managing Director
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Mr. Neaz Mohammad Khan Deputy Managing Director Mr. M.M. Haikal Hashmi Senior
Executive Vice President Head of Credit Compliance & Administration Mr. Arham
Masudul Huq Senior Executive Vice President Company Secretary Mrs Shamshad Begum
Principal, Dhaka Bank Training Institute & Head of Human Resources Division Mr.
S.A.F.A. Musabbir Executive Vice President Legal & Recovery Mr. Fakhrul Islam
Senior Vice President Head of Operations Mr. Shah Azizul Islam Senior Vice
President In-charge, Retail Banking Mr. Md Shahadat Hossain Senior Vice
President In-charge- Credit Operations Mr. Darashiko Khasru Vice President Head
of Finance & Accounts Division
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Mr. J.Q.M. Habibullah Vice President Board Secretariat & Share Division Mr.
Imran Ahmed Vice President In-charge-RMU & Head BASEL-II Imp Cell Mr. Syed
Faisal Omar Vice President In-charge, Global Transaction Services Mr. Md.
Shaukat Ali Khan Vice President In-charge, SME Unit Mr. Faruk Ahmed Senior
Assistant Vice President In-charge, CPC-Trade Operations Mr. A K M Ahsan Kabir
Senior Assistant Vice President In-charge Internal Control & Compliance Mr.
Saiful Momin Senior Assistant Vice President In-charge, Information Technology
Division Mr. Mesbah Uddin Ahmed Senior Assistant Vice President In-charge,
Syndication & Structured Finance Mr. Shaikh Altaf Mahmud Senior Assistant Vice
President In-charge, Monitoring
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Mr. Kamrul Aziz Nippon First Assistant Vice President In-charge, Capital Market
Services Mr. K. M. Faisal Faruqui Assistant Vice President In-charge Treasury
Division Mr. Ibrahim Khalil Senior Principal Officer Head of Public Relations &
Brand Communication
4.4 Total Compensation and Benefits Package of DBL
4.4.1 Objectives
This chapter outlines the rules relating to compensation structure and the
benefit package of the Bank and gives detailed procedures for exercising them in
order to promote fair treatment and consistency within the organisation.
4.4.2 Salary Structure
Refer to the Salary & Remuneration Package Structure for Supervisors and
Executive Staff of DBL for details regarding the structure of salary and
allowances for different units under DBL.
4.4.3 Revision of Pay Elements
The compensation structure may be revised, if necessary, with the approval of
the Director, Admin/HR, Head of the Dept., Finance and the Chief Executive.
4.4.4 Employee Compensation Records
Employee Pay Records are maintained by the Personnel & Admin Department for
Workers and Supervisors and by the Human Resource Department for the Executives.
These departments maintain personal file of all employees where all records in
regards to the employee are kept in addition to any soft copy (in computer
database)
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maintained by the departments. These records are confidential and should not be
accessible to any unauthorised persons (authorisation defined by HR or Personnel
& Admin dept. head).
4.5 Basic Employee Benefits for Permanent Employees
4.5.1 Provident Fund
The Bank's Provident Fund is a funded scheme. All confirmed and permanent
employees are entitled to be members of the Provident Fund. The employee
contribution, equal to 10% of the basic salary, is deducted each month through
the payroll. The Bank contributes an equal amount and both the employees' and
the organization's contributions are paid to the Fund each month. In the
Provident Fund Ledger, both the employee's and the Bank's contributions are
credited to the individual employee's account. The membership of the Trustees of
the Provident Fund must include at a minimum: a) Representation from the HR
Department b) Representation from Finance & Accounts Department c) Two
representatives from the Workers
4.5.2 Group Term Life Insurance
The Bank provides coverage of life insurance to all Permanent employees after
their joining with the organization effective on the date of joining. To
participate in the Group Term Life Insurance policy, all employees are required
to fill up "Group Term Life Insurance Registration Form", and submit to
HR/Personnel & Admin dept for processing. To change the beneficiary at any time,
the employee must complete the â‚‚Beneficiary Change Formâ‚‚, and submit to the
Human Resource Department or to the Personnel & Admin dept for making the
changes.
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In the event of the death of an employee while in the bankâ‚‚s service, other
than: 1) death by suicide, 2) death by criminal prosecution, or 3) death by
taking part in any activities subversive of the state, the bank depending on the
classification of employees shall pay benefits on normal death and accidental
death from insurance bank as follows: Employee classification Executives Normal
death benefit 36 month salary last Accidental benefit death
basic 72 month last basic salary
Detail of compensation other than death (partial disability) will be determined
as per calculation within the purview of insurance coverage policy. No recovery
or adjustments of loans or salary advances etc. shall be made from the insurance
claim benefits. In addition to this coverage of insurance benefits compensation
will also be made as per "Workman's Compensation Act 1923" in the case of
death/disability of employees.
4.6 Bonuses
All confirmed Permanent employees of Dhaka Bank Limited are entitled to one
Annual Bonus each equivalent to â‚‚Basic Salaryâ‚‚ under the following
conditions: Attendance in the Calendar Bonus Entitlement Year 213 days + 107
days + 100% of the Bonus 50% of the Bonus
4.7 Meal Facilities
The following facilities are provided in each of the organisation under Dhaka
Bank Limited:
4.7.1 Branches
Executives: ï‚· Meals are provided at a subsidised rate.
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4.7.2 Head Office:
Executives: ï‚· No meals are provided.
4.8 Accommodation
The Bank on the basis of requirements and availability provides accommodation to
DBLâ‚‚s Top Executives at their own established facilities in Dhaka city.
Outside the Dhaka city, the Bank provides expenses of the
4.9 Utilities Allowances
Executives between grades J to M4: No utility allowance is paid. Executives of
grades M5 and above: Telephone Water Electricity Gas (Local & (Limit/Mont NWD)
Designation (Limit/Month) (Limit/Month) h) (Limit/Month) Taka Taka Taka Taka
Manager / Sr. 2,500 Manager EVP and At Actual above
At Actual
At Actual
At Actual
At Actual
At Actual
At Actual
To get reimbursed for utilities bills, complete â‚‚Expense Reimbursement
Formâ‚‚, and submit to the Accounts Department. The Accounts Department will
make reimbursement payment to the employee within 45 days from the date of
submission. Telephone bill has to be forwarded to the IT department, so payments
can be made by the company, if it is in the name of the Bank.
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4.10 Medical Benefits
4.10.1 Medical Benefits for the Executive Staff
The bank will reimburse the cost of authorised medical treatments in Bangladesh
including hospitalisation, surgical and childbirth subject to the conditions
mentioned hereunder. In case of any overseas treatment prior approval from the
Chief Executive is required. The following are the basic guidelines in regards
to medical benefits provided to the Executives: (i) Treatment to be carried out
by a registered Medical Practitioner. The Bank reserves the right to approve the
Medical Practitioner consulted. (ii) Dental treatment included as preventative
measures, the Bank will reimburse for â‚‚Upper and Lowerâ‚‚ dental cleaning
twice a year. (iii) Reimbursement of the cost will be restricted to the
treatment of the executive, spouse and children. (iv) Relevant details including
names and dates of birth of spouse and the eligible children should be sent to
HRD for record. (v) Children attaining 21 years of age or getting married,
whichever is earlier, will not be entitled to reimbursement of the cost of
medical treatment. (vi) Expenditure on medical treatment of Executives is
reimbursed by the company as per following entitlements: (vii) Expenses Cannot
not be claimed: The Bank will not reimburse the following expenses: ï‚· ï‚· ï‚·
ï‚· ï‚· The supply of dentures and false caps. Any cosmetic dental work. The
supply of spectacle frames. Special diets except in hospitals under medical
advice Treatments not covered under paragraphs (i) and (ii)
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4.11 Transportation Facilities and Car Purchase Scheme
4.11.1 Transportation Facilities for the Executives
4.11.1.1 Executives DBL Branches: There are no transportation facilities
provided for the Executives between grade J to M4 Head Office: There are no
transportation facilities provided for the Executives between grades J to M4.
For business purpose travel, Pool Car can be provided based on availability.
4.11.1.2 Car Purchase Scheme: Senior Executives: Employees in this grade, which
is Managers, Senior Managers, and Vice President, are eligible to apply for a
Car Purchase Scheme upon the expiry of one month after the date of joining in
the Bank. To initiate the request for participating in this Car Purchase Scheme,
the employee is required to write a note to the HR Department. The Human
Resource Department then gets necessary approvals and then forwards the request
to the Head Office Admin department. The objective of the scheme is to provide
financial assistance to bank executives for the purchase of cars and thus to
provide executives with transport necessary for carrying out their duties. An
employee who has acquired a car under this scheme will not be eligible to apply
again for a period of five (5) years. The following are the approved
specification of the transport and benefit given to the employee:
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Description of the 1300/1500 cc new or reconditioned. Four door Sedan. car : Car
Price : Purchase Contributions : Fuel Allowance Tk 900,000/= (maximum Tk
1,000,000) Employee   50%; Bank   50% Allowance of 350 litters per month to
be paid by the Bank for worker based at Head Office and also worker who are
working at the branches. Based on manufacturer s year model, for up to 6 year
old car, the Bank will pay a maintenance allowance of Tk 3,000/= per month. For
8 years or older cars, the Bank will pay a maintenance allowance of Tk 4,000/=
per month. For 10 years or older cars, the Bank will pay a maintenance allowance
of Tk 5,000/= per month. The money will be accumulated in the employee s
account in the accounts department and will be utilised for repairs and
maintenance when they arise. The accounts department will be responsible to pay
the money immediately upon submission of paid in receipt from the Workshops.
Driver : To be employed by the employee concerned. An allowance of Tk 4,100 per
month will be paid by the Bank to cover the driver s salary.
Maintenance:
Major Accidental Any vehicle under this scheme will maintain a 1st Repairs Party
insurance. The Admin. Department will ensure filing of all insurance claims
considering the amount of money required to repair and the amount of deductible.
The amount of deductible and/or the amount of repairs will be split 50:50
between the employer and the employee if the balance of the maintenance fund is
not adequate to cover the expenses. The employer initially will make the full
payment to the insurance company and/or to the repair shop, then the portion of
the employee will be deducted from the salary in equivalent 12 instalments, if
not covered by the insurance. The Admin. Department (and the employee if willing
to) will supervise all repair work and do the administrative tasks, then forward
a bill of the employees portion, signed by the employee, to the Accounts
Department for repayment.
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Purchase of re-conditioned cars will be subject to inspection on behalf of the
Bank, by the Transport department or by a workshop designated for this purpose
by them. The car will be checked for engine and body condition, suspension and
safety features. The  Automobile Inspection Report  will be completed and
signed by the Administration Department for processing the request of car
purchase. The company, bank or a leasing company may finance the purchase of the
car. The car will be initially registered as follows: By the company Through a
bank loan Through a leasing contract - in the name of the company - as
stipulated by the bank - in the name of the leasing company
The employee s 50% contribution towards the cost of the car will be paid by
him to the Bank in equal monthly instalments over a period of three years if the
car is financed by the Bank, or over a period equal to the currency of the loan
or leasing contract, as the case may be. If the car is acquired through a
leasing contract or a bank loan, the employee will be required to contribute 50%
of the lease payments or loan instalments every month until the expiry of the
lease period. If the price of the car exceeds Tk 1,000,000 the employee will pay
the amount in excess of Tk 1,000,000 to the company in cash. The Bank s 50%
contribution to the cost of the car will be amortised over a period of five
years. After the expiry of this period, or the expiry of the leasing contract if
the car has been leased, or the repayment of the bank loan if the car has been
acquired through a bank loan, and subject to prior receipt of the final
instalment of his contribution, the ownership of the car will be transferred to
the employee. Costs incurred in connection with the transfer will be payable by
the employees. In the event that the employee leaves the Bank before the expiry
of five years, he shall have the option to purchase the car from the Bank at the
written down value in the books of the Bank, plus the total of the unpaid
instalments towards, his own contribution. This option to purchase will only be
available to an employee who has
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been with the company for a minimum period of two years. In case he does not
choose to exercise the purchase option, the Bank will reimburse the employee 75%
of the amount contributed by him/her towards the cost of the car, and the car
will then remain in or be transferred to the ownership of the Bank. The employee
will be expected to use the car for the Bank s business as well as for
fulfilling his private transport needs, including the transport of children to
school, etc. Employees who have availed for this scheme are expected to meet all
their transportation needs with the vehicle provided under scheme. No other
transport will be provided to an employee who has availed of this scheme.
However, if the employee is asked to travel outside Dhaka on Bank s business,
he will be reimbursed at Tk. 6/- per km, subject to prior permission from his
department head, plus an allowance of Tk. 100/- per day for the driver. Tolls
and other expenses will be paid at actual. Repairs and maintenance of the
vehicle will be the responsibility of the employee. A maintenance allowance will
be paid as explained earlier in this section. All taxes, fees, duties,
registration costs, and insurance will be paid by the Bank. The employee must
inform the Admin Department one month prior to the due date for
Fitness/Insurance and the Admin Department will take full responsibilities to
complete the said tasks. The Bank s approval to participate into this scheme
will be based on the nature of the employee s job and on the availability of
funds with the Bank, at the time when the application to join the scheme is
made. The employee may choose to select a car that is presently in the name of
the Bank and if made available to the employee for purchase. The administrative
department will be responsible to identify the market value of the car, get
approval from the HR Department, and make an offer to the employee. For the
purchase of the company car, the employee shall be liable to pay 50% of the
market value of the vehicle, in equal monthly instalments to the Bank over a
period of three (3) years. All other terms and conditions shall remain the same.
The Management reserves the right to change, modify, amend, cancel or waive any
or all of the provisions of this scheme at its absolute discretion and without
any prior
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notice and also to withhold or reject any application to join the scheme,
without assigning any reason whatsoever.
Top Executives Top Executives of grade M6 and above, i.e. Sr. Vice President and
above are entitled to 24 hours company paid transportation. The company also
pays for the fuel at cost, Driver s salary, and for all necessary
maintenance/repair and administrative cost of the vehicle.
4.12 Leave Entitlements
4.12.1 Basic Leave Types
All Permanent Executives of the Bank are entitled to various types of Leaves
that are calculated based on calendar year and prorated from the date of joining
the Bank's service for the first year. Leave entitlements of expatriate
(Contract) employees shall be governed by their respective terms of employment
with the company specified in the Appointment Letter. For Employees the leave
entitlements are calculated in accordance with "The Shops and Establishment Act
1965", Factories Act 1965 and the Factory Rules 1979. These entitlements are as
follows: Types of Leave Casual Leave (with full wages) Sick Leave (on ½ average
wages) Earned Leave (1 for every 22 days actual work with wages) Public Holidays
Days Per Year 10 14 12 10 (minimum)
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The following are the Basic Leave entitlements for the Executives at Head
Office: Types of Leave Weekends (with full wages) Casual Leave (with full wages)
Sick Leave (with full wages) Earned Leave Public Holidays Days Per Year As per
Section 5.5 15 10 15 As per list of holidays declared by the Govt.
The following are the Basic Leave entitlements for the Executives at Branches:
Types of Leave Weekends (with full wages) Casual Leave (with full wages) Sick
Leave (with full wages) Earned Leave Public Holidays Days Per Year As per
Section 5.5 15 10 15 10 (minimum)
Public Holidays for Head Office worker are governed by the policy of the Board
of Directors of the Bank and is based on the list of holidays declared by Govt.
For Branch employees, the Management determines the Public Holidays (minimum 10
days) and it is announced at the beginning of the year.
4.12.2 Definitions of Basic Leave Entitlements
The following are some definitions of Basic Leaves entitlements:
4.12.2.1 Casual Leave Entitlement to casual leave for the Executive at Head-
Office and Branch Site, it is 15 days based on each calendar year. The employee
is entitled to exercise Casual Leave from the very next day of joining; though
the Casual Leave is pro-rated for the balance period of the year counting from
the joining date.
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Casual leave cannot be availed for more than three days at a time. Also, it
cannot be carried forward to the following year or cashed. Casual Leave can be
taken with Weekends, Public Holidays, Earned Leaves, etc. but be limited to only
3 days.
4.12.2.2 Sick Leave Entitlement to Sick Leave for the Executives at Head-Office
and Branch Site it is 15 days on the basis of each calendar year. The employee
is eligible to exercise the Sick Leave benefit from the date of his/her joining.
The above entitlements represent the maximum number of days Sick Leave that an
employee can avail in a year. Normally, medical certificates are not required
but if the sick leave exceeds three days at a time or if it is being taken as an
extension of Earned Leave, then a Medical Certificate is required. Where this is
not the case an application for Sick Leave is considered enough. Sick leave
cannot be carried forward to the succeeding year and cannot be cashed. If an
employee is sick on Weekend or on a Public Holiday, that day will not be counted
as a sick day and the number of Sick Leave taken out of his/her allocated days
will be excluding those days.
4.12.2.3 Earned Leave Entitlement to Earned Leave for the Executives at Head-
Office and Branch Site is 15 days on the basis of each completed year of
service. A maximum of thirty (30) days can be accumulated. Any accumulation
beyond this will automatically lapse on the following 1st of January each year.
The entitlement to Earned Leave is exclusive of Weekends and Public Holidays
i.e., Weekends and Public Holidays falling during the annual leave taken will be
considered additional to the entitlement. Though Earned Leave is counted from
the date of joining but it cannot be taken until the employee passes the
probationary period receiving confirmation.
4.13 Other Leave Options
The following sections explain some additional leave options that an employee
may exercise depending on the need.
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4.13.1 Maternity Leave
Married woman employees are entitled to Maternity Leave benefit as per "The
Maternity Benefit Act, 1939". The period of Maternity Leave shall be 84 actual
days of absence which shall include the Public Holidays and Weekends (non-
working days) and including the day of delivery. The entitlement to maternity
leave is to be availed as follows:    Six weeks or 42 days immediately
preceding and including the day of delivery. Six weeks or 42 days immediately
following the day of delivery. A woman shall not be entitled to maternity leave
unless she has been employed by the Bank for a period of not less than nine
months immediately preceding the date of delivery.
4.13.2 Study Leave
An Executive may be granted Study Leave, with or without pay, entirely at the
bank s discretion, once s/he has been in the bank for at least one year. Study
leave is normally granted if the course of study which the employee intends to
pursue is likely to benefit the Bank s operations. Study Leave can be given
for up to a maximum period of two years.
4.13.3 Hajj Leave
A Permanent Executives who intends to perform Hajj at his own expenses, upon
completion of one year of service, may be allowed for a 45 days Hajj Leave with
pay at the sole discretion of the management. This leave can only be availed
once in the entire period of service. Similar leave may be granted for employees
other than Muslims, if the occasion is a once in a life time holy event
significant to the believers.
4.13.4 Special Leave
Special leave may be granted to the Permanent or Contract employees with or
without pay and allowances at the sole discretion of the management. Application
for special
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leave should be forwarded to HR/Personnel department, through the relevant
departmental head, along with appropriate reasons and recommendations for
necessary action. Some examples of such leave request may be for marriage, death
in the family, etc.
4.13.5 Leave Encashment
Executives before leaving the Bank due to resignation, retirement or termination
are allowed to cash the Earned and Compensatory Leave due to them up to a
maximum of 30 days, while for workers it is 20 days plus the prorated
entitlement for the current year. The amount paid on encashment includes only
the employee's last drawn basic salary for the period. Allowances are not
included in this amount.
4.13.6 Maintenance of Leave Records
Approved leave applications received from departments are entered in a Leave
Register and the lower portion of the leave application showing the balance of
leave is sent to the employee. Leave records for all Executives and Head Office
Staffs are maintained by HR Department.
4.14 Financial Assistance Schemes
4.14.1 Objectives
To meet various emergency and incidental expenses, the Bank provides financial
assistance in the form of advance payment of salary and loan against provident
fund to its employees. The following sections give detailed procedures for
salary advances and loan sanctions under Financial Assistance Schemes.
4.14.2 Priorities for Loan against Provident Fund (PF) or Salary Advance
The following priorities will be maintained for PF loan or salary advance
request processing:
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1. Medical emergencies for spouse or children 2. Death of Spouse or children 3.
Medical emergencies for other dependent 4. Death of other dependent 5. Rental
advance 6. Own marriage 7. Other emergencies 8. Marriage of siblings 9.
Education 10. Other requirements
4.14.3 Loan against Provident Fund (PF) or Salary Advance Eligibility and Limits
4.14.3.1 Loan against Provident Fund 1. All Permanent employees who have
contributed to atleast18 instalments in the Contributory Provident Fund of Dhaka
Bank Limited and have been in the Bank for less than 3 years, are eligible to
take loan against the provident fund equal and up to 75% of the employee s own
contribution. 2. All Permanent employees who are members of the Contributory
Provident Fund and have been in the Bank for more than 3 years but less than 4
years, are eligible to take loan against the provident fund equal and up to 100%
of the employee s own contribution. 3. All Permanent employees who are members
of the Contributory Provident Fund and have been in the Bank for more than 4
years but less than 5 years, are eligible to take loan against the provident
fund equal and up to 70% of the total contribution (employee s own
contribution + Bank s contribution).
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4. All Permanent employees who are members of the Contributory Provident Fund
and have been in the Bank for more than 5 years are eligible to take loan
against the provident fund equal and up to 75% of the total contribution
(employee s own contribution + Bank s contribution). 4.14.3.2 Salary Advance
Salary Advance is given only in those situations where the Permanent employee
does not have enough contribution to the Provident Fund but the urgency is very
high. Usually one month s average gross salary is given as advance but based
on the emergency; a maximum of two months  salary can be given as advance.
4.14.4 Repayment of Loan or Salary Advance
One month s grace period is given to the employee before the repayment starts.
The employee, through automatic deductions by the Accounts Dept. from his/her
Paycheck, makes the payment. The following are some guidelines for repayments:
1. If financial situation permits, the employee is asked to pay the money back
with 6 equal monthly payments. 2. If the financial situation does not permit,
the employee is given the opportunity to pay back with 12 equal monthly
instalments. 3. If the amount of loan is large and the repayment imposes
hardship on the employee, it may be considered to extend the repayment schedule
to a maximum of 24 equal instalments. In such cases, the Department Head of the
employee must recommend the accounts department to do so. 4. If the loan or
advance is related to medical payments and the employee is eligible for medical
benefit, the advance/loan will be applied towards the eligible benefit once the
treatment is received. Upon receipt of all medical vouchers, the employee is
required to submit  Medical Bills Reimbursement Form , as per guidelines
provided in Section 6.12.2 and apply the advance/loan towards the refund. Any
excess amount taken as advance/loan must be paid back immediately after the
treatment is over.
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4.14.5 Procedures to Apply and Processing of a Loan or Salary Advance Request
The employee completes a  Loan Application Form , and upon receiving an
approval from the Department Head, submits to the Accounts Department. The
Accounts Dept. personnel review the application, discuss with the employee if
necessary, and let the employee know about the outcome. At the time of
processing the loan/advance request, the Accounts Dept. identifies the repayment
agreement discussing with the employee.
The following are guidelines for loan/advance approving: Loan Amount (Tk) < or =
5,000.00 >5,000.00 20,000.00 > 20,000.00 < or = Approval Authority Section Head
Loan/Advance responsible for by
Second level authorisation Manager or above. Department Head
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5.
United Commercial Bank Ltd.
5.1 Background of United Commercial Bank Ltd (UCBL)
Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists
of the country and also participated by the Government, UCB started its
operation in mid 1983 and has since been able to establish one of the largest
networks of 102 branches among the first generation banks in the private sector.
With its firm commitment to the economic development of the country, the Bank
has already made a distinct mark in the realm of Private Sector Banking through
personalised service, innovative practices, dynamic approach and efficient
Management. The Bank, aiming to play a leading role in the economic activities
of the country, is firmly engaged in the development of trade, commerce and
industry thorough a creative credit policy.
5.2 Mission Statement
To be the bank of 1 st choice through maximizing value for our clients,
shareholder and employees and contribution to the society.
5.3 Management
The Bank has in its Management a combination of highly skilled and eminent
bankers of the country of varied experience and expertise successfully led by
Mr. M. Shahjahan Bhuiyan, a dynamic banker, as its Managing Director and well
educated young, energetic and dedicated officers working with missionary zeal
for the growth and progress of the institution.
SENIOR MANAGEMENT
Managing Director Mr. M. Shahjahan Bhuiyan Additional Managing Director
(Operation) Mr. Shafiqul Alam
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44. HRM-370
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Deputy Managing Director (Corporate Banking Division) Mr. M. Shahidul Islam
Deputy Managing Director (International Division) Mr. Mamun-Ur-Rashid Deputy
Managing Director Mr. Mirza Mahmud Rafiqur Rahman Deputy Managing Director Mr.
Md. Shahed Jalal Chowdhury Senior Executive Vice President Mr. Nurul Alam Mr.
Mohammad Shawkat Jamil Mr. Md. Tariqul Azam Mr. Md. Zahirul Alam Mr. Barun Kanti
Saha Mr. Md. Sohrab Mustafa Executive Vice President Mr. Golam Awlia Mr.
Muhammad H. Kafi Mr. Abu Saleh Md. Abdul Mazed Senior Vice President Mr. Md.
Quamrul Hassan Mr. Chandan Sen Gupta Mr. Md. Yunus Mr. Badiul Alam Mr. Abu
Sadeque Miah Mr. Mahmudul Bashar Khan Mr. Md. Ekram Ullah Mr. Md. Delwar Hossain
Mazumder
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Mr. Abul Alam Ferdous Mr. Md. Ahaduzzaman Mr. Md. Jasim Uddin Mr. Md. Habibur
Rahman Mr. Md. Habibur Morsalin Mr. Md. Shahadat Hossain Shohag Mr. Mian Quamrul
Hasan Chowdhury Mr. Md. Ehsanul Kabir Mr. Abu Nur Md. Parvez Sajjad Mr. Mizanur
Rahman Mr. Kazi Muzibul Islam
5.4 Total Compensation and Benefits Package of UCBL
5.4.1 Objectives
This chapter outlines the rules relating to compensation structure and the
benefit package of the Bank and gives detailed procedures for exercising them in
order to promote fair treatment and consistency within the organisation.
5.4.2 Salary Structure
Refer to the Salary & Remuneration Package Structure for Supervisors and
Executive Staff of UCBL for details regarding the structure of salary and
allowances for different units under UCBL
5.4.3 Revision of Pay Elements
The compensation structure may be revised, if necessary, with the approval of
the Director, Admin/HR, and Head of the Dept., Finance and the Chief Executive.
5.4.4 Employee Compensation Records
Employee Pay Records are maintained by the Personnel & Admin Department for
Workers and Supervisors and by the Human Resource Department for the Executives.
These departments maintain personal file of all employees where all records in
regards to the employee are kept in addition to any soft copy (in computer
database)
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maintained by the departments. These records are confidential and should not be
accessible to any unauthorised persons (authorisation defined by HR or Personnel
& Admin dept. head).
5.5 Basic Employee Benefits for Permanent Employees
5.5.1 Provident Fund
The Company's Provident Fund is a funded scheme. All confirmed and permanent
employees are entitled to be members of the Provident Fund. The employee
contribution, equal to 10% of the basic salary, is deducted each month through
the payroll. The Company's Provident Fund is a funded scheme. All long-
established and enduring employees are at liberty to be members of the Provident
Fund. In the Provident Fund Ledger, both the employee's and the Company's
contributions are accredited to the individual employee's account.
5.5.2 Bonuses
All confirmed Permanent employees of United Commercial Bank Limited are entitled
to one Annual Bonus each equivalent to  Basic Salary  under the following
conditions:
Attendance in the Calendar Bonus Entitlement Year 200 days + 90 days + 100% of
the Bonus 50% of the Bonus
5.5.3 Accommodation
The Bank on the basis of requirements and availability provides accommodation to
UCBL s Top Executives at their own established facilities in Dhaka city.
Outside the Dhaka city, the Bank provides expenses for the accommodation.
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5.6 Utilities Allowances
Telephone Electricity Designatio n (Limit/Mont h) Taka Gas (Limit/Mont h) Taka
Water (Local &
(Limit/Mon NWD) th) Taka (Limit/Mont h) Taka
Manager / Sr. 2,500 Manager EVP and At Actual above Other 1500 employees
At Actual
At Actual
At Actual
At Actual 450
At Actual 1000
At Actual No
The Accounts Department will make compensation payment to the employee within 30
days from the date of submission. Telephone bill has to be forwarded to the HR
department, and then they forwarded that bill to IT department, so payments can
be made by the company, if it is in the name of the Bank.
5.7 Mobile Telephone
Based on the UCBL s business need, a mobile telephone provided to a permanent
or contract employee. To receive this benefit, a written application should be
forwarded to the Department Head, IT upon approvals of the employee s
Department Head and In charge of the site/factory if applicable. The mobile
phone is to be used first and foremost for business purpose, though can be
utilised for being in contact with the family members, if necessary with logical
discretion due to the high cost of mobile phone usage.
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5.8 Medical Benefits
Medical Benefits for the Executive Staff The bank will compensate the cost of
authorised medical treatments in Bangladesh including hospitalisation, surgical
and childbirth subject to the conditions mentioned here. The Bank reserves the
right to approve the Medical Practitioner consulted. Dental treatment included
as defensive measures, the Bank will reimburse for  Upper and Lower  dental
cleaning twice a year. Reimbursement of the cost will be restricted to the
treatment of the executive, spouse and children. Expenditure on medical
treatment of Executives is reimbursed by the company. Every employees are not
get the medical benefits.
5.9 Car Purchase Scheme
Board of directors are entitled to 24 hours company paid transportation. The
company also pays for the fuel at cost, Driver s salary, and for all necessary
maintenance/repair and administrative cost of the vehicle. Car purchase scheme
has to be changed into(for the top management, middle management get allowance
for driver and fuel cost but need to buy the car with own expense where loan
facility is available from the bank/interest redemption) LOAN SCHEME   All
employees are eligible to any purpose loan provided they have served the
organization for 2 years
5.10 Leave Entitlements
5.10.1 Basic Leave Types
All Permanent Executives of the Bank are entitled to various types of Leaves
that are calculated based on calendar year and prorated from the date of joining
the Bank's service for the first year. Leave entitlements of expatriate
(Contract) employees shall be governed by their respective terms of employment
with the company specified in the Appointment Letter.
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The following are the Basic Leave entitlements for the Executives at Head
Office: Types of Leave Weekends (with full wages) Casual Leave (with full wages)
Sick Leave (with full wages) Earned Leave Public Holidays Days Per Year As per
Section 5.5 15 10 15 As per list of holidays declared by the Govt.
The following are the Basic Leave entitlements for the Executives at Branches:
Types of Leave Weekends (with full wages) Casual Leave (with full wages) Sick
Leave (with full wages) Earned Leave Public Holidays Days Per Year As per
Section 5.5 15 10 15 10 (minimum)
5.10.2 Definitions of Basic Leave Entitlements
5.10.2.1 Casual Leave Entitlement to casual leave for the Executive at Head-
Office and Branch Site, it is 15 days based on each calendar year. The employee
is entitled to exercise Casual Leave from the very next day of joining; though
the Casual Leave is pro-rated for the balance period of the year counting from
the joining date. Casual Leave can be taken with Weekends, Public Holidays,
Earned Leaves, etc. but be limited to only 3 days. 5.10.2.2 Sick Leave
Entitlement to Sick Leave for the Executives at Head-Office and Branch Site it
is 15 days on the basis of each calendar year. The employee is eligible to
exercise the Sick Leave benefit from the date of his/her joining. The above
entitlements represent the maximum number of days Sick
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Leave that an employee can avail in a year. If an employee is sick on Weekend or
on a Public Holiday, that day will not be counted as a sick day and the number
of Sick Leave taken out of his/her allocated days will be excluding those days.
5.10.2.3 Earned Leave Entitlement to Earned Leave for the Executives at Head-
Office and Branch Site is 15 days on the basis of each completed year of
service. The entitlement to Earned Leave is exclusive of Weekends and Public
Holidays i.e., Weekends and Public Holidays falling during the annual leave
taken will be considered additional to the entitlement. Though Earned Leave is
counted from the date of joining but it cannot be taken until the employee
passes the probationary period receiving confirmation.
5.10.2.4 Maternity Leave The period of Maternity Leave shall be 84 actual days
of absence which shall include the Public Holidays and Weekends (non-working
days) and including the day of delivery. 5.10.2.5 Study Leave Study leave is
normally granted if the course of study which the employee intends to pursue is
likely to benefit the Bank s operations.
5.10.2.6 Hajj Leave Special leave may be granted to the Permanent or Contract
employees with or without pay and allowances at the sole discretion of the
management.
5.10.2.7 Special Leave Extraordinary leave may be decided to the enduring or
Contract employees with or without pay and allowances at the sole discretion of
the management. Application for special leave should be forwarded to
HR/Personnel department, through the relevant departmental head, along with
appropriate reasons and recommendations for necessary action. Some examples of
such leave request may be for marriage, death in the family, etc.
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6.
CONCLUSION
This study research has been focused on the compensation system, practiced by
two private banks of Bangladesh. There are some components that are taken into
consideration during pay in our country, but it varies significantly among banks
regarding pay. It could have been better, if we might have worked with all types
of banks. Here in our study we have worked with only one type of bank. In our
study we have tried to focus on the pay differences, possible reasons of using
different pay components used by the banks in our country. Finally, we came up
with some recommendations, which can be used for both of the banks so that they
can perform better.
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7.
Appendix
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Compensation System of DBL & UCBL
INDEPENDENT UNIVERSITY, BANGLADESH
Topic: Compensation & Benefits Survey Questionnaire
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54. HRM-370
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Please put the tick mark into your choices and write your opinions where
necessary
1. State how long you have been working in your organization? Less than one
year: 1- 3years: 3- 5 years: 5- 9 years: More than 10 years: 2. What is your job
description including designation & department?
3. Do you believe that your job profile is benchmarked with the same jobs in the
industry and market place?
4. How many hours do you work per day? 5-6 hours 6-7 hours 8-9 hours more 5. How
the company gives promotion to their employees? Based on time Performance Other
6. Does your company utilize a traditional salary grade system? Yesí¯€ Noí¯€ If
yes, please answer the following questions. What was your starting salary? 15-25
25-35 35-45 more than 45 Does your company offer salary increment? Yesí¯€ Noí¯€
How often is the salary structure reviewed? ____________________ When was the
last time it was adjusted? ____________________ By what percentage?
______________% Does your company give a general increase? Yesí¯€ Noí¯€ Does
your company give a cost of living increase? Yesí¯€ Noí¯€
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7. Does your company have a formal employee merit review process? Yesí¯€ Noí¯€
8. Does your company have a bonus or incentive plan? Yesí¯€ Noí¯€ If yes, please
answer the following questions. What type of bonus? Annual Bonus Incentive Bonus
Other What is was the average bonus paid last year?
Tk._____________________________ What is this year s projected average bonus?
_____________________________% 9. What criteria does your human resource
department use to arrive at giving allowances and benefits to employees?
____________________________________________________________ 10. Please mark the
benefit plans offered by the organization: Benefits Pension Plan Retirement
Profit Sharing Medical Short Term Disability Long Term Disability Life Insurance
Vacation Holidays Personal Days Sick Time Offer Not-offer
11. What is the waiting period before benefits are paid? _______weeks 12. Do you
get any reimbursement for training or professional development? Yesí¯€ No í¯€
13. When is reimbursement made? Starting periodí¯€ At completion of the
course/semesterí¯€ Middle periodí¯€ Otherí¯€ 14. What is the maximum
reimbursement amount an employee can receive per year? Tk.________ 15. Are you
permitted time off from work to attend classes? Yes, with payí¯€ Yes, without
payí¯€ Only in special casesí¯€ Noí¯€
THANX A LOT FOR YOUR KIND ASSISTANCE
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8.
~ ~
REFERENCES
Richard I. Henderson, Compensation Management in a Knowledge Based World, 10 th
Edition, Pearson. Websites of both DHAKA BANK LIMITED & United Commercial Bank
Ltd.
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