HCG/Rewards/01/2025

26th February, 2025

All Permanent Employees (Pakistan Operations)

Performance Rewards 2024

Dear Colleagues,

The year 2024 was a testament to our unwavering commitment to excellence, as we achieved remarkable milestones that
reinforced our position as a leader in the industry. Our focus on growth, supported by a firm foundation of innovation and
resilience, propelled us to record profitability. With a remarkable 72% increase in market capitalization, we ranked
among the Top Ten Best-Performing Stocks in the Asia Pacific region, as recognized by S&P Global Market Intelligence.
Further solidifying our market standing, the Pakistan Stock Exchange acknowledged us among the “Top 5 Companies” in
the country, while PACRA elevated our credit rating to “AAA”, reflecting the strength and stability of our financial position.

Our achievements were recognized across prestigious global and national platforms. We were honored as “Best Digital
Bank” for the third consecutive year and “Best Bank for Customer Engagement” for the sixth time at the Pakistan
Banking Awards. At the Pakistan Digital Awards, we secured three major accolades: “Best Banking Tech of the Year”,
“Global Digital Award”, and “Best e-Commerce Website” for AlfaMall. We also earned the title of “Best Investment
Bank of the Year 2024” in Pakistan by Euromoney.

During the year 2024, the Management, with the support and guidance of the Chairman His Highness Sheikh Nahayan
Mubarak Al Nahayan and the Board, undertook various initiatives for the employees of Bank Alfalah, like:

 Introduction of Index Based Tax Relief for employees to alleviate the financial burden due to enhanced taxes
was offered till June 2025,
 Flexible Car Benefit Policy: first of its kind flexible car benefit program whereby employees were offered
flexibility in tailoring the transportation benefit as per their individual needs,
 Re-alignment of Salary Structure was done for enhanced industry competitiveness,
 Revisions in House Finance and Personal Finance policies,
 Introduction of Hybrid, Remote and Flexible Working, Paternity Leave and special allowance for Persons
with Disabilities and many other changes in HR Policies,
 Enhancement in Employee Welfare Program. Under this program during 2024, approx. PKR 70Mn has been
disbursed to 471 staff,
 Special Award of 1.5 Gross Salaries to celebrate the success of surpassing 1,000 branches and 2 trillion in
deposits in 2023.

Our commitment to providing best-in-class perks and benefits, along with our continuous efforts to foster a strong culture
centered around “One Bank, One Team,” “Inspire & Empower,” and “Focus on Customers,” has set new

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 benchmarks for excellence. The Bank received all 15 Best Practices Awards from the Global Diversity, Equity & Inclusion
Benchmark (GDEIB) Awards, earning the distinction of “Most Inclusive Organization”. We were further recognized as a
“Top 10 Employer of Choice for Gender Diversity” by the Pakistan Business Council and secured the runner-up award
for the “Gender2Equity” initiative from the International Finance Corporation (IFC).

None of this would have been possible without the passion, dedication, and resilience of our employees. Their commitment
to our corporate values and their drive to create an exceptional culture continue to set us apart in the industry, enabling us
to deliver outstanding service to our customers and communities.

As we reflect on our collective achievements and success, we are pleased to announce the Performance Rewards for
the Year 2024:

 Indexed Based Tax Relief allowance:

The allowance, previously extended until June 30, 2025, has now been further extended until December 31, 2025.

 Performance Rewards 2024:

Performance Rewards will be disbursed to the eligible employees along with February’s payroll. Eligible employees will
be communicated their rewards (increment, promotions, and performance bonus) through their respective Group
Offices.

a) Minimum Increments:
We have ensured that minimum increments for our employees shall be as follows:
PKR per month

Grade 3 Rater 4 Rater 5 Rater

AVP-II 14,000 16,000 18,000

AVP-I 12,000 14,000 16,000

OG-I 11,000 13,000 15,000

OG-II 9,500 10,750 12,000

OG-III 9,000 10,000 11,000

OG-IV 8,000 9,000 10,000

b) Minimum Salary for OG-IV with 3 rating shall be at PKR 58,000/- per month and for OG-III with 3 rating shall be
PKR 64,000/- per month effective 1st January 2025.

c) Promotions: 2,189 employees in OG-IV & OG-III grades were promoted during 2024 based on their promotion
policy out of which 32% were female employees.

To foster growth and career progression, during this appraisal cycle, we are promoting around 1,300+ employees
in OG-II & above grades.

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  Staff Insurance Policy: for the year 2024 shall be as follows:

Hospitalization Limits (PKR)

Grades MATERNITY
Self & Laparoscopic
Parents Room Rate OPD Limit* Normal Caesarean Cataract Limit
Dependents Surgery
Delivery Delivery

SVP-I to SEVP-II 700,000 375,000 Private Room 100,000 225,000 275,000 90,000 235,000

OG-I to VP-II 525,000 290,000 9,000 NIL 175,000 230,000 75,000 210,000

OG-IV to OG-II 415,000 250,000 7,000 NIL 140,000 190,000 70,000 180,000

* limit per family excluding parents

The above limits include the top up plan for which employees shall contribute PKR 1,475 per insured to be
recovered in equal monthly installment of PKR 123/-.

 Child Care Allowance:

The child care allowance has been increased from PKR 10K per month to PKR 20K per month and can now be availed
twice during the service with the Bank.

 Bank Maintained Car Policy:

o Time restriction to convert the existing SLCL into Bank Maintained Car option has now been removed,
o Buy Back of car was previously allowed after 5 years of usage. This condition has now been relaxed and
employee may exercise the buy back at the rates as defined in the Policy Guidelines after 1 year.
o Misc. conditions/ terms have also been revised. You may refer to the Policy Guidelines.

 Special Award:
To celebrate the Bank’s outstanding achievements in 2024, including record profitability, prestigious industry
recognitions, and accolades for excellence in business, we are pleased to inform that all eligible employees with a
minimum rating of 3, have been awarded a one-time special award equal to 2.5 month’s basic salary as of
31st December, 2024 in addition to the performance bonus. This shall also be disbursed along with performance rewards
with February’s payroll.

We hope these market-leading initiatives in our compensation plans will further strengthen our high-performance culture
and help alleviate the financial challenges faced by our employees.

As we step into 2025, we must continue to uphold our mantra of “One Bank, One Team,” stay committed to our values,
and set our sights on even more ambitious goals. Insha-Allah, through collaboration and dedication, we will achieve even
greater success together.

Once again, congratulations to all, and wishing you a prosperous and fulfilling 2025!

Umer Mallick Faisal Farooq Khan

Head – Rewards & Financial Services Chief Human Resources Officer

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