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OIL & GAS DEVELOPMENT COMPANY LIMITED

Policy Department
Head Office, Islamabad

No. AA0102-06 15th June 2016

Subject: HRREFORMSANDWAYFORWARD

The Board of Directors in its 183rd meeting held on 05th June 2016 resolved that:

1.1 In the interest of long term sustainability of the Company and rationalization of
salary bill, salary structure in the case of employees covered under the pension
system is revised as follows by reviving the concept of maximum ceiling for all
executive and non-management groups:

1.1.1 Executive Groups:

Amountm Runees

Grade Minimum Basic Maximum Basic

EG-9 280,000 740,000
EG-8 200,000 620,000
EG-7 150,000 470,000
EG-6 120,000 375,000
EG-5 100,000 320,000
EG-4 70,000 290,000
EG-3 51,600 210,000
EG-2 41,900 175,000
EG-1 25,000 100,000

1.1.2 Non-Management Groups:

Amount in Runees

Grade Minimum Basic Maximum Basic

NMG-17 19,000 130,000
NMG-16 17,000 116,000
NMG-15 15,500 106,000
NMG-14 14,000 96,000
NMG-13 13,000 89,000
NMG-12 12,000 82,000
NMG-11 10,000 72,000
NMG-1O 8,500 55,000
NMG-09 8,000 54,000
NMG-08 7,800 53,000

No. AA0102-06
NMG-07
dated 15th June 2016
7,500 52,000
,~ Page 01 of 03
 OIL & GAS DEVELOPMENT COMPANY LIMITED
Policy Department
Head Office, Islamabad
Fueling the future

Grade Minimum Basic Maximum Basic

NMG-06 7,000 47,000
NMG-05 6,800 46,000
NMG-04 5,800 40,000
NMG-03 5,600 38,000
NMG-02 5,200 35,000
NMG-Ol 5,000 34,000

1.2 All benefits and allowances including House Rent, Utilities, Entertainment, Hard
Area, Field etc. payable as per practice and policy shall remain intact.

1.3 An employee on the upper scale will receive an annual increment equivalent to
CPI on basic salary as a Special Allowance which will not form part of the basic
pay. The annual CPI number of the SBP will be treated as the cap for this
allowance.

1.4 An employee whose basic salary is above the upper limit prescribed for the group
will continue to draw the same and there will be no downward revision.

1.5 Increments allowed by the Board in the year of retirement/superannuation shall

continue provided that upper ceiling of maximum basic pay shall not be breached.

1.6 The scales will be reviewed after every five (05) years or earlier as deemed
appropriate by the Board to make necessary adjustments considering market
trend and inflationary impact.

1.7 Employees regularized from 01st January 2016 and onward will be entitled to
Gratuity and Provident Fund instead of Pension. Gratuity and Provident Fund
shall be payable and determined as follows:

1.7.1 Gratuity:

1.7.1.1 One gross salary for every completed year of service.

1.7.1.2 Gross salary for the purposes of Gratuity shall include Basic Pay +
House Rent + Utilities.

1.7.1.3 Minimum two (02) years service shall be mandatory for

entitlement to payment of Gratuity.

1.7.1.4 Period of less than twelve (12) months shall be calculated on

prorate.~
No. AA0102-06 dated 15th June 2016 Page 02 of 03
 OIL & GAS DEVELOPMENT COMPANY LIMITED
Policy Department
Head Office, Islamabad
FuelinG the future

1.7.2 Contributory Provident Fund (CPFl:

1.7.2.1 Employees shall be entitled to Provident Fund on the basis of

participation to the fund.

1.7.2.2 Employees on regularization will contribute one (01) basic salary

towards Provident Fund annually and Company shall match the
contribution.

1.7.2.3 An employee shall be entitled to receive the amount accumulated

in the Provident Fund upon leaving Company service.

1.7.2-4 Provident Fund shall be managed by a Trust.

1.7.2.5 Management shall frame rules for the administration/distribution

of Provident Fund on the participation basis.

02. The above is forwarded for information of all concerned.

~~
(Tal at Haider)
Chief H.R Officer (Policy)
Ext: 3606

Distribution:

All Employees

No. AA0102-06 dated 15th June 2016 Page 03 of 03