FREQUENTLY ASKED QUESTIONS ON HR POLICY FOR OFFICERS AND EXCEUTIVES (SALES AND NUTRITION)

Welcome to Nestle India Limited

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

Purpose of this information booklet:

It helps you to understand policies that apply to the employees working in nestle. It provides detailed information on each policy so that the employees can make proper use of the benefits extended under these policies. Address some common queries through frequently asked questions and also act as a ready reckon.

This document is meant for internal use and for quick reference on various applicable HR policies. Extracts of the HR policies have been used where relevant. However, for the purpose of application of any HR policy, it is advised that the HR policies manual should be referred s available on the intranet. In case of any difference between this document and the HR policy manual and other internet HR documents, which may arise out of any policy updation or any other reasons, the HR policy manual and other HR policies in the company shall prevail.Further please feel free to get in touch with your line manager or HR manager for any clarifications.

Organization of this booklet:

This booklet has been divided into sections, under each section a few topics are clubbed like in the section My leave you would have topics like Privileged leave, sick leave, casual leave each of the topics has been discussed in detail and certain queries related to that are also solved using questions and answers. The attempt has been to answer most of the employees queries through FAQs.

CONTENTS
Section Topic My allowance Daily headquarter allowance House rent allowance Conveyance allowance Imprest payment/Advance payment Telephone,photocopies,postage,fax,courier etc. Transfer benefits Leave travel allowance Medical Medical schemes Hospitalization Medical insurance

Page

7-17

18-21

Leave
Privilege Leave Casual Leave Sick leave Vehicle loan - Two wheeler - Four wheeler Repeat vehicle loan Procedure for vehicle loan Staff loan Procedure for staff loan

22-24

Loan

25-29

Retrials
Provident fund EDLI (Employee deposit link insurance scheme) Gratuity

30-33

Miscellaneous Income tax Compensation Incentive schemes - Sales incentive scheme - Professional merit scheme - Performance bonus scheme Reward and Recognition scheme
Seek the peek Award (Individual) Quarterly Passion to win Award (Team) Annual Super Achievers Scheme (Individual) Half yearly Long service Award

34

35-40

Application format
Application format for Staff loan Application format for vehicle loan LTA claim Form Transfer allowance claim

41-45

GRADE/ DESIGNATION CLARIFICTION GRADE

M

LEVEL
Officer

DESINGATION
Nutrition officer/Sales officer/Activation officer/RTM officer

Executive

Nutrition Executive/Sales Executive/Activation Executive/RTM Executive

Section 1 : My Allowance
The various allowances given by the company to its employees are as follows:

Que: What is daily Headquarter allowance, who all are eligible for that, what is the amount sanctioned for that?
Ans. Eligibility Amount Given : : For officers and Executives Rs. 125/-

Que: What is Daily Travel allowance, who all are eligible for that, what

is the amount sanctioned for that?

Ans. Eligibility Amount given : : For officers and Executives Rs. 110/-

The Executives who possess their personal Vehicle (4 wheeler) are entitled to Rs. 6/KM. In this case the person will not be eligible for 110/-

Que: How to Claim Daily Travel allowance Ans. To claim your daily travel allowance, you have to fill the travel expenses statement form (Available with the ASMs/AMNs), attach necessary supporting documents and submit to the Area Sales Manager/Area Manager-Nutrition on the designated day. The ASM/AMN submits these expenses statements to accounts for processing with in two of three days from receiving it from the concerned team member. In case travel itinerary of the officers/Executives changes after getting approved by the line manager, then both the itineraries duly approved by the line managers are to be Submitted by Sales officers/Nutrition Officers.

Que: What is the procedure for reimbursement? Ans. The expense amount get credited in the account of the employees within a period of 20 days from the date of submission to the accounts team. Que: What is the Travelling Allowance in case of Night halt? Ans. The employees travel to various locations. The towns and cities have been classified as Metros & Mini Metros, Class A & B towns are divided on the basis of their cost of living index. The towns that have been identified as per the classification mentioned above.

Branch

Metros & Mini Metros Chandigarh Delhi Gurgaon

Class A Amritsar Dharmshala Jaipur Jammu Joshimath Kathmandu Leh Lucknow Ludhiana Manali Nanital Pokhra Shimla Srinagar Udaipur Agra Allahabad Dehardun Jaisalmer Jalandhar Kanpur Kulu Mussiore Parwano Rishikesh Varanasi Bathinda

Class B Rest all towns

Delhi

Field Force Travel Entitlements

L Grade Particulars Own arrangement with night halt Entitlement Rs. 400 per night

Up country allowance ( with night halt only)

Rs. 1000/- per day (Class A towns) this includes Upcountry allowance- Rs.210/-, Hotel stay & others (incl. morning tea, laundry, etc.) upto Rs. 790/Rs.750/- per day (class B towns) this includes Upcountry allowance of Rs. 210/-, Hotel stay & others (incl. morning tea, laundry, etc.) upto Rs. 540/-

Transit Bhatta

Rs.175/- per night

Head quarter Allowance/Ex-head quarter allowance without night halt

Rs.125/- per day

Conveyance allowance

Rs.600/- per k.m. for employment with cars. Actuals for auto/ Rickshaw/Bus & for others, capped at Rs. 110/- per working day. Road: State transport/ Luxury buses must be availed where it is convenient and time saving. (Bus tickets above Rs.100 per travel needs to be attached to the expense statement) Shared taxis allowed in consultation with ASM (only pre-approved routes or where the above mentioned mode is not applicable) Special taxi coverage is allowed only on need basis duly approved by Branch manager.

Travel

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Train During day journey- 2nd Tier AC chair car/ 1st class ordinary. During overnight journey- 1st class ordinary/AC sleeper- 2nd tier/ AC sleeper-3rd Tier Air: Economy class air travel allowed only in defined sectors as approved by Branch manager.

M Grade Particulars Entitlement Rs. 650/- per day (class A towns) (Upcountry allowance of Rs.150/- and hotel stay (incl. all expenses) upto Rs. 500) Rs 600/- per day (class B towns) ( Upcountry allowance of Rs. 150/- and hotel stay (Incl. all expenses) upto Rs. 450)

Up country allowance (with night halt only)

Transit bhatta

Rs 175 if the person reaches HQ town after Midnight

Head quarter allowance/Ex- Head quarter allowance without night halt Conveyance allowance

Rs. 125/- per day

Actual Auto/ Rickshaw/ Bus for others, capped at Rs. 110/- per working day.

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Travel

Road: State transport / Luxury Buses must be availed it is convenient and time saving. (Bus tickets above Rs 100 per travel needs to be attached to the expense statement. Shared Taxis allowed in consultation with ASM (only pre- Approved routes or where the above mentioned mode is not applicable) Special taxi coverage is allowed only on need basis duly approved by Branch manager Train: During day journey- 2nd tier AC chair Car/ 1st class ordinary During overnight journey- 1st class ordinary/AC sleeper 2nd tier/ AC sleeper3rd tier Air: Economy class air travel allowed only in defined sectors as approved by Branch manager.

Que: What is House Rent allowance?

Ans. The HRA allowance is a monthly allowance of 40% of the basic salary for Employees of L &M Grade. HRA is a tax beneficial allowance however, subject to the conditions enumerated under the prevailing Tax laws. Employees should further understand the Tax implications on HRA through a competent authority.

Que: What is Conveyance allowance and how much is the amount sanctioned for that? Ans. Conveyance allowance is a monthly allowance. This allowance is Tax free as per current Tax laws. Amount Sanctioned The amount sanctioned to L and M Grade employees for the Conveyance allowance is Rs. 800/- per month.

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Que: What is imprest payment/advance payment and what is the amount sanctioned for that? Ans: Imprest payment is an amount that is given as a primary cover against expenses. It is extendable to a field staff executive at the time of joining and is a one time rotating payment. It is not a recurring financial assistance to meet ongoing tour and travel needs. Amount sanctioned On the basis of the territory allocation the accounts dept. remits 40-45 days average expense of the territory to the concerned employees ERA account.

Que: What are the allowances given for Telephone, Photocopies, Postage, Fax, Courier etc.? Ans. Recognizing that effective communication tools are a business enabler, we intend to provide this benefit to all eligible employees, thereby aligning our Communication policy to the current market practices. This Communication Policy shall form the guiding document enabling our employees to stay connected and networked. Que: Who all are eligible for that? Ans. All permanent Employees including probationers. Que: How is the Mobile phone reimbursement is done? Ans: Mobile Phone reimbursement Guidelines The reimbursement of will be done on the following criteria: - The job required significant traveling (> 10 days in a month) - The employee needs to contact/be contacted frequently by other units on an emergency basis during non-working hours. - The employees has to deal with a large number of external customers/vendors, etc. - The list of eligible employees in L & M grade shall be compiled by the respective Division, approved by functional/ Divisional Head and corporate Employee services Manager. This list shall be provided to HO Administration, to facilitate the mobile reimbursement process as per the policy. - The reimbursement shall be made against original bills which have the approval of line manager.

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If the expenses exceeds the current Grade limits, the department head should provide the justification for exceptional approval and proposed increase in limits to HR administration Department with the approval of the functional/Divisional Head and Corporate employee service manager

Que: What is the Amount Sanctioned for Mobile phone reimbursement? Ans. For Employees in Head office: Grade L & M Grade employees For Employees in factory: Grade L & M Grade employees Limits (per month) Rs.400/Limits (per month) Rs.400/-

Que: What are the allowances given for Laptop/Wireless Data connectivity Card? Ans. As per the job requirement employees can avail of laptop/wireless data connectivity card with the approval of function/Divisional Head, Globe Manager and market Head or his/her delegated authority For Employees in Branches: Grade L & M Grade employees All employees (excluding HR/Administration/ Finance) L & M Grade employees in HR/Administration/Finance Limits (Per month) Rs.1,000/-

Rs.400/-

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Que: What is the Mobile reimbursement All permanent employees should contact the travel desk/ HR administration department to avail Matrix SIM card facility whenever they travel overseas for business purposes such as training, Seminars, Conferences, Business discussions etc. Depending on availability and cost effectiveness, the Matrix SIM card shall be provided to the employee. - Employee shall beer the expenses for personal calls made from Matrix SIM card in excess of prescribed guidelines for international travel.

Que: What are te other Other communication expenses at Branches? Ans. Employees in L & M Grade at branches who are based in non-metro locations can claim reimbursement towards other communication expenses including faxes, cyber caf charges, courier, photocopies, postage etc., basis actual bills up to Rs. 200/-p.m. Que: How to Claim communication allowance? Ans Employees are required monthly claims and submit copies of bills as supporting as a part Of monthly expense statement. The onus of highlighting official calls and adhering to the overall monthly limits would rest solely with the individual.

Transfer Benefits
Que: Who all are Entitle for the transfer benefits in the company? Ans The employee will be entitled to transfer benefits if the employee has been transferred from one head quarter town to another. The transfer herein is presumed to be made as per the business requirements of the company. Que: What are the Guidelines for claiming transfer benefits? Ans. Following are the broad guidelines: The employee must prepare a travel expenditure budget (travel and transportation) and get it approved by the Administration Manager. The employee must take the shortest route for travel and transportation. The family include emoloyees spouse, dependent children.

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The employee should make claims for reimbursement within 45 days.

Transfer The employees will get the following transfer benefits

Heads
Travel (self & family)

Benefits
2nd AC train fare

Settling allowance

Rs 30,000/Hotel stay will be allowed for a maximum period of 15 days. M Grade: Self- Rs.400/- & Rs.200/- for each family member. At this Grade Hotel reimbursement is not provided. L Grade: Self- Rs.175/- & Rs.90/- for each family member. At this grade Hotel reimbursement is provided as per travel In case employees in L grade marked his own arrangement, he will be paid Rs.400/- for self& Rs.200/- for each family member.

Bhatta and other allowances

Food

Food expenses for self and family upto 15 days are re-imbursed on actual basis. However such expenses should be reasonable and not exorbitant

Transportation household goods

3 quotation to be submitted to Branch Administration, who will decide on the final Vendor. The payment made to the vendor needs to be claimed by the employee or in certain cases it can be bill to the company directly.

Claim procedure

Both bhatta and settling allowance need to be claimed through Transfer allowance and transfer details form and will be paid epayroll after deduction of income tax. The same needs to be approve d by the line manager
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Leave travel allowance

Que: What is leave travel allowance? Ans. LTA is an annual allowance and is a part of fixed salary. In order to Avail LTA, an Employee should take atleast 3 days privilege Leave consecutively, prior to submitting a copy of the sanctioned leave along with the application for LTA made in form A, to the payroll Form A and B are available on the HR intranet Site.

Que: What is the Amount paid for LTA? Ans. LTC paid in a year (April to March) For officers (M Grade) For Executive (L Grade) - Rs 30,000/- Rs 35,000/-

Que: How to Claim Leave travel allowance? Ans. The employeer can claim LTA by availing 3 days PL (Privilege leave) The employeer have to fill up the LTA claim form (A) (Refer Annexure 1) and hand it over to the ASM/ANM The ASM/ANM will sanction the leave and route it to the Branch secretary, who will in turn handover to accounts department for processing after completing necessary formalities.

Que: How to reimburse the LTA?Reimbursement? Ans. The employeer may except the amount to get credited in your bank account with in 15 days from the date of submission.

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Que: What is the Reduction of tax liability in case of LTA? Ans. The LTA will be exempted twice in a block of four calendar years (Current Block Period is 2006-2009 ) by submitting Form B (Refer Annexure 2).

Que: What is the Procedure of LTA payout? Ans.

Leave to be sanctioned by the line manager and approved by his superior

Copy of the sanctioned leave along with the application for LTA made in form to be submitted to the branch secretary

The documentation is done and the application is passed on the accounts department for final processing

The Amount is credited to the concerned employee"s account

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Section 2: Medical
Medical schemes The objective of the medical scheme is to assist the employee in availing good medical treatment for himself/herself and his/her family when the need arises. Que: Who all are Eligible for the Medical schemes in the company? Ans. All permanent employees including probationers. Family includes spouse and children up to the age of 21 years In case of mentally handicapped children, the company may, by exception, extend the physical age limit.

Que: What are the Entitlements under Medical schemes? Ans. The entitlements are divided into two categories A. Domiciliary Que: Who are Entitle for the Domiciliary medical schemes in the company? Ans. The entitlement amount is for self & family. If the employee is not married he/she would be entitled for the entire amount as per entitlement for the respective block period. If an employee joins the company in the middle of the block period; his/her entitlement for the block period would be prorated basis the year of service.

Que: What is the Amount sanctioned under domicilary medical schemes? Ans. Self & family: Rs. 36,000 for a block period of three years for Officers/Executives (Current block period : - 2007-31st March, 2010).

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Que: What are the Expenses Admissible under domiciliary medical schemes? Ans. Allopathic, Homeopathic or Ayurvedic medicines prescribed by a qualified and registered doctor, for the treatment of an illness, will be eligible for reimbursement Reimbursement of expenses will be basic medical prescription in original, from a registered medical practitioner. In case of an ongoing treatment, the bills may be submitted with a photocopy of the original prescription. Common use medicines like cough, cold, fever, stomach disorder, vomiting, headache, first aid kit items etc., would be reimbursed up to Rs. 150/- per bill, without doctors prescription. The purpose of this facility is to help employees claim genuine medicine expenses, which in the normal course do not necessarily need a doctors prescription. There is to cap on the number of such bills that can be presented by the employee during a month. However each unit must monitor these bills to ensure that there is no misuse of this facility. Employees are to ensure that the medicines should be clearly written on the bill and they should be of common use as mentioned in the guidelines. However reimbursements for homeopathic and Ayurvedic medicines would continue to be supported by a prescription/ receipt from a qualified and registered doctor. Clinical examination recommended by the nominated doctor will be eligible for reimbursement. Pregnancy will be covered under domiciliary expenses and childbirth will be covered under hospitalization. Reimbursement up to Rs.2000/- for spectacles would be admissible under the scheme. The employees would also be allowed to take Prescribed and powered contact lenses instead of spectacles. Reimbursement for spectacles is applicable for both self and each family member up to a maximum of Rs. 2000/- per spectacles. Up to two claims per block per family member are allowed. A card provided by the ophthalmologist with the specification for the glasses would be good enough as a prescription. The card should have details of (Name of the person), Date of measurement, Power specification). However the claim has to be supported by bills from the spectacles shop.

Que: What are the expenses which are not admissibale under domiciliary medical schemes?

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Ans. Dental treatment (including gums). Hearing aids. Any external aids such as wheelchair/ orthopedic shoes/ crutches, etc. Ant other expenses which could only arise through personal neglect. If an employee or any member of his/her family contracts any disease or illness as a result of neglect, carelessness, irresponsibility or excess in living, the expenses incurred will not be eligible for reimbursement. Expenses incurred on surgery to eliminate or modify physical defects nor injurious to health, and cosmetic surgery, will not be eligible for reimbursement. In exceptional cases, arising out of an accident, this may be allowed at the sole discretion of the company.

Que: How to Claim for Domiciliary medical expenses? Ans. Fill up the domiciliary form (Refer annexure 3) and attach all the medical bills along with the doctors prescription and send it to the accounts department. The amount will be credited in the employees account with in period of 20 days.

B. Hospitalization Que: Who all are Entitle for the hospitalization medical schemes given by the company? Ans.

Que: What is the Amount sanctioned for the Hospitalization schemes by the company? Ans. Self : The actual expense Family : Rs. 26,000 for a block of 3 years (Current block period:-2007-31st March,2010)

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Que: What are the Admissible expenses under the Hospitalization schemes? Ans. Employee will be entitled to a single A/c standard room in the hospital. The admissible per day limits for room rent is as follows : Delhi, Mumbai, Kolkata, Chennai Bangalore and Hyderabad NCR and other state capitals Other cities

up to a max of Rs. 5000/-

: :

up to a max of Rs. 5000/up to a max of Rs. 3500/-

Further, for cases requiring Specialist Treatment or Emergency hospitalization, per day room tariff up to maximum of Rs. 5000/- will be admissible, subject to due authorization by Head of HR Consultant doctors fee for visits will be reimbursed up to a maximum of Rs. 1,000/- per day. Que: What are the Documents needed for hospitalization expense claim? Ans. Following are the documents you have to submit (all in originals)

Claim form duly filled in Discharge summary from the hospital Hospital bill/payments receipts All investigation/Test reports Bills and receipts for investigations along with Doctors prescription Bills of pharmacy, Labs along with corresponding original prescription duly endorsed by the treating doctor

Que: What are the Maternity Benefits given by the company? Ans.

A female married employee will be eligible for maternity leave, with pay, of 2 weeks before delivery and up to 4 calendar months after delivery. A medical certificate giving the probable date of delivery should be sent along with the leave application. The 4 months leave post delivery will however, be based on the actual date of delivery and the number of days/weeks availed of prior to the delivery. Maternity leave cannot exceed a total of 18 weeks prior to and post delivery.

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A female married employee is also eligible for extended maternity leave at 50% pay, up to 6 weeks beyond the regular maternity leave. Before resuming work, a medical certificate giving the actual date of delivery is to be submitted. Privilege leave entitlement will accumulate for the period of the maternity leave availed. If the mother continues to breastfeed the child after 4 months period, she will be allowed to come to work one hour late or leave one hour early from the normal working hours, up to a period of 6 months from the date of birth, to take care of the baby.

Que: What are the Medical insurance Facility provided by the company for the family of employees in L & M Grade? Ans. For securing higher Hospitalization coverage for the family employees in L & M Grade can claim Medical insurance premium up to Rs. 1,250/- per annum, from the hospitalization entitlement of the family. Any additional amount for medical insurance premium (over 1250/- in a year) will be allowed to be claimed for the domiciliary medical entitlement. This is applicable for the year 2007 and onwards.

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Section 3: My leave

Leave Rules
There are three types of Leave, which are entitled to the employees and they are as follows:

1) Privilege Leave
Que: What are entitlements for Privilege leave? Ans. For all employees Work week 5 day week 5.5 day week 6 day week Entitlement 20 working days 22 working days 24 working days

Que: Who all are eligible for privilege leave? Ans. An employee is eligible for Privilege only after completing 1 year in the company Que: What is the Maximum Accumulation for privilege leave? Ans. Privilege leave is granted every calendar year and can be accumulated up to 2 calendar years. Que: How the Privilege Leave Encashment is done? Ans. Encashment of privilege leave is allowed only in case of resignation or death of the employee. In case of resignations, pro-rated leave for the current year will also be accounted for encashment.

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 Employee who is not able to avail leave due to business requirements, he/she will be allowed encashment of the privilege leave. If any employee is left with balance leave at the time of retirement, the same would lapse and the company will have no obligation to pay for the same. The privilege leave will be encashed at last drawn gross salary, gross monthly salary includes basic salary plus all monthly allowances. Leave encashment in cases of expatriation, Retirement & Resignation will be calculated on the basis of calendar days. The employee is not entitled to en-cash the privilege leave during his/her service tenure.

2) Casual Leave
Que: What are Entitlements for Casual leave? Ans. The employees are entitled to 10 days of sick leave in a year. If the employee joins after 1st January during any year, he/she will be credited casual leave on pro-rata basis. Like if the employee joins on 1st April of any year then the casual leave for 275 days will be 7.5 days which will rounded off as 7 days of casual leave which will be credited to the employee account.

Que: Who all are Eligible for Casual leave? Ans. Employees in L & M Grade are entitled to casual leave on the calendar year basis. Que: What is the Maximum Accumulation for casual leave? Ans. Casual leave cant be accumulated nor can they be encashed Que. How to Avail Casual leave? Ans. The employee cannot avail more than 3 casual leaves at a stretch The casual leave cannot be combined with a sick leave or privilege leave.

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 The employee cannot avail casual leave during his/her notice period if he/she resigns. If the employee is on probation the employee can avail his casual leave.

3) Sick leave
Que: What are the Entitlements for Sick leave? Ans. The employees are entitled for 14 days of sick leave in a year. Que: Who all are Eligible for the Sick leave? Ans. The employees in the L & M grade are eligible for sick leave. Que: What is the Maximum accumulation for Sick leave? Ans. The sick leave can be accumulated for 90 days. The sick leave can be accumulated but it cannot be encashed.

Que: How to Avail Sick leave? Ans. The employee can avail Sick leave for 2 days. Sick leave more than 2 days needs to be supported by doctors certificate. The employee can avail sick leave during the probation period, he/she has to submit doctors certificate along with the application form. If an employee falls sick either during the period of leave or immediately after its expiry and he is desirous of applying for extension of leave then in such cases, he will be sanctioned leave to the extent it is in his credit and thereafter sick leave may be sanctioned if due to him. And the sick leave can be combined with privileged leave.

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Section 4: My Loans
Vehicle loan Two wheeler loan
Que: Who all are eligible for Two wheeler loan?

Ans.
Eligibility : All employees in L & M grade are eligible for this Loan, including probationers (except those covered under The Car Loan Scheme).

Que: What is the interest rate on two wheeler loan? Ans. Interest loan : Interest free loan of 90% of the cost of new two wheeler, Including first time Road tax and insurance.

Que: What is the maximum amount sanctioned for two wheeler loan? Ans. Maximum Amount : Rs. 45,000

Que: How the repayment of of two wheeler loan is done? Ans. Repayment of loan : Repayable in 48 monthly installments, to be deducted From salary.

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Four wheeler loan

Que: Who all are eligible for four wheeler loan? Ans. Eligibility : The Executives (Fixed force) also are also entitled for Four wheeler loan. This scheme is only extended to Sales Executive & customer service and distribution executive.

Que: What is the interest rate on four wheeler loan? Ans. Interest rate : Interest free

Que: What is the maximum amount sanctioned for four wheeler loan? Ans. Maximum Amount : Rs. 225000/-

Que: How rhe repayment of four wheeler loan is done? Ans. Repayment of loan : Repayable over 72 equal monthly installments, however It can also be repayed after 4 years if the Employee wants.

Car loan
Que: Who all are eligible for Car loan? Ans. Eligibility : The executives in field force in L grade are eligible for This car loan.

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Que: What is the interest rate on car loan? Ans. Interest rate : Interest free

Que: What is the Maximum amount sanctioned for Car loan? Ans. Maximum limit : New Car: Rs. 225,000/Second hand car: 90% of the purchase price of the car Will be sanctioned for car loan.

Que: How the repayment of Car loan is done? Ans. Repayment : Repayable over 72 equal monthly installments. However If the employee wants, He/she can repay the loan after 4 Years.

Que: How the cars should be used taken under Car loan scheme? Ans. Those eligible for cars under Car loan scheme should use cars for local official business trips. Areas near place of work, the kilometers run on official account will be reimbursed to the individual at the per km rate applicable at the time. The current rate is Rs. 6.00/km Whenever the individuals car is off the road, no alternative conveyance will be provided at the companys cost Que: What are the gudielines for taking Repeat vehicle and car loan? Ans. No vehicle loan and car loan will be granted until 4 years from the previous such loan and only after the previous loan is fully repaid. Amount allowed for a repeat loan will be as same as fresh loan. When an eligible employee who has already taken a vehicle loan, becomes eligible for a car loan, the loan may be sanctioned on the following basis:

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Rs. 225,000/Less 10% depreciated value per year on Rs. 50,000/- (approx cost of a new two wheeler) Or 90% of the value of the vehicle including insurance and road tax, whichever is lower

Que: What are the Documents required for Vehicle loan and Car loan? Ans. Request for loan is to be made in the prescribed format accompanied with Performa Invoice/ Agreement to sell, to the respective HR department At the time loan is disbursed, the employee is required to sign : A promissory note An agreement of Hypothecation Que: What is the procedure for applying for loan? Ans. After filling the requisite details attach the quotation and submit it to your immediate senior.

Application is made to the Branch secretary 1 2 3 4 5 6

Approval by Branch manager (2 days)

Application form is forwarded to the Accounts department for processing (1

day)
The loan amount is credited into the concerned employees account ( 7 days) The employee has to submit a receipt from the company from whom the

vechicle has been purchased, duly signed by the person/ Agency (15 days)
The copy of the registration book showing the hypothication to the company

duly signed by RTO (15 days)

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Staff loan
Que: Who all are eligible for staff loan? Ans. Eligibility : All permanent employees, excluding probationers

Que: What is the interest rate for staff loan? Ans. Interest rate : Interest free

Que: What is the maximum amount sanctioned for staff loan? Ans. Maximum Amount : Amount equivalent to two months basic salary (including Dearness allowance), which is subject to minimum of Rs. 75,000/- & maximum of Rs. 1 lac.

Que: How the repayment of staff loan is done? Ans. Repayment : Repayable in 36 equal monthly installments.

Que: Name the List of events under which an employee can avail the benefit of staff loan? Ans.

Emergency/ Unforeseen circumstances Medical requirements outside the scope of medical scheme Purchase of white goods House renovation Marriage/ Function in the family

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Any contingency that entails a lump sum payment

Que: When a employee gets Repeat staff loan? Ans. A repeat staff loan may be allowed as soon as the previous loan has been fully repaid. In exceptional cases, management may consider a staff loan beyond the prescribed upper limit

Que: How to apply for the staff loan? Ans. The employee has to request his/her immediate senior for the staff loan format. After filling all the requisite details attach the quotation and submit it to your immediate senior

1 2 3 4 5

The staff loan application is approved by the line manager (1 day)

Approved by the HR manager is passed on to the branch secretary (1 day)

Approval by the Branch manager (1 day)

Application form is forwarded to the accounts department for processing by

the branch secretary ( 1 day)

The loan amount is credited into the concerned employees account (7 days)

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Section 7: My Retrials
Provident Fund
The Provident fund Scheme is applicable in the Company basis the Rules and Regulations contained in the employees Provident Funds and miscellaneous provisions Act, 1952. (P.F. Scheme, Pension Scheme 1995, EDLI). All employees must be enrolled as members from the date of joining. Que: What is the amount of Contribution done by employee and by the company to the Provident Fund? Ans. By employee : Contribution of 12% of his/her Basic salary Per month. : 8.33% of the companys contribution subject To maximum of Rs.541/- per month is Credited In the Pension fund under the Provident fund Scheme and the balance is credited in the Provident fund.

By Company

Que: How and whom to nominate? Ans. The employee needs to fill Form 2 (Nomination) and form 11 (Enrollment) in duplicate and submit to Branch Secretary. The nominees can be anybody from the employees family. Que: What will effect on PF accumulation In case of changing job? Ans. In case the employee changes the job from one company to another, the PF accumulation standing to his/her credit gets transferred along with the interest to the new account with the new employer without any loss of the employee. For that the employee has to fill form no13 which is available with the Administration manager.

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Que: How to take Loan against Provident fund? Ans. The employees can take certain loans against his/her PF accumulation as per the rules enumerated in the Act. And the employees are advised to apply for loan at least 15 days in advance, along with all the necessary supporting documents. And the grounds on which the employee can take loan are as follows: Loan advance for purchase of dwelling site (Land) Loan advance for purchase of dwelling house/ flat Loan advance for construction of house Loan advance for repayment of housing loan to state govt. housing board pr any other govt. recognized housing finance body. Loan advance for illness e.g., hospitalization for more than a month, major surgical operations or suffering from TB, leprosy, paralysis, cancer, heart ailment etc. Loan advance for marriage of self/ son/ daughter/ sister/ brother. Loan advance for post matriculation education of Son/ Daughter

Que: How to Withdraw of PF accumulations? Ans. The employee can withdraw your PF accumulation in case of resignation or retirement from the services of the company. Que: What is the Process of withdrawing PF accumulation? Ans. The employee can withdraw his/her PF accumulation by filling up form-19 and submitting the same to the administration Manager. However PF will be settled after two months from the date of separation. Que: What is EDLI (Employee Deposit link insurance scheme)? Ans. All provident Fund members are covered under EDLI. An amount of Rs. 100,000/- shall be paid to the nominee in the case of Death of an employee while in service. This is applicable to only members covered under the provident fund trust. For members covered under RPFC, the amount will be paid by the RPFC and will depend upon the length of service and the PF contributions.

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Gratuity
The scheme is applicable as the payment of Gratuity Act 1970. Effective May 2000, the Company has established a Gratuity Trust. Accordingly payments under the payment of Gratuity Act (for all categories of employees including workmen) will be regulated through the Trust. Que: Who are Eligible for the Gratuity scheme? Ans. Minimum qualifying service is 5 years, except in case of death or permanent disability while in the service of the company. Qualifying service must be continuous and includes the period during which an employee has been continuously on the companys rolls as an employee. An employee who abandons service, without giving proper resignation will not be considered eligible for gratuity. Only service with the company will be taken into consideration not the service with the companys agent or contractors. An employee will eligible for gratuity on termination of service for any of the following reasons: By virtue of attaining the age of retirement. By termination of service by the company for any reason other than for serious misconduct or retrenchment in respect of which retrenchment compensation is payable under the law. By resignation On death or disablement due to accident or disease.

Que: What are the Benefits under gratuity scheme? Ans For every completed year if service or part thereof in excess of six months, gratuity will be paid at the rate of fifteen days salary based on last drawn salary. Fifteen days salary shall be calculated by dividing monthly salary by twenty-six and multiplying the quotient by fifteen The amount of gratuity payable to an employee shall not exceed Rs. 1,000,000/-

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Que: How is the Calculation of Gratuity is done? Ans. Formula for calculating Gratuity is as follows: (Your last basic salary * No of years of service * 15)/26. To illustrate if your last basic salary is Rs.3000/- and you have worked for 8 years, then your Gratuity will be calculated as follows {(3000*8*15)/26} = Rs. 13,846/*For the calculation of the amount of Gratuity, fraction of a year in excess of six months will be counted as one year.

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Section 8: My Miscellaneous
Income tax
Que: How is the Investment Declaration for Income tax calculation is done? Ans. All employees must submit to office (Branch secretary), the TDS declaration form at the commencement of the new financial year. This must reach office by 31st March every year. Employees are to submit the final declaration along with supporting of each and every investment by 31st December every year. Que: What is the Procedure of submission of Rent receipts? Ans. Rent receipts have to be submitted to the Branch Secretary by 31st December along with the investment details. You have to submit at least three months rent receipts which must bear the employees and the land lords residence address.

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COMPENSATION
Nestle favors competitive stimulating and fair Compensation & Benefit structure offering an overall and attractive remuneration package. Remuneration includes salary, benefits variable part of remuneration as well as social security and pension benefits. Nestle consistently endeavors to establish a compensation practice taking into account relevant external compensation levels as well as the requirements of internal fairness. Regular surveys are undertaken to gather relevant information on the remuneration levels practiced in the external environment. However, the evolution of remuneration is also determined by the capacity of the Company to improve its productivity. As per Nestle global approach towards remuneration, individual salary is influenced by the following four factors: 1. 2. 3. 4. Sustained Contribution External Competitiveness Internal Equity Salary History

And this term are briefly discussed as follows:

Sustained Contribution
This term focuses on the following points History of employees long term performance. Employees contribution level over a period of successive reviews. Its helpful in Indicating future performance Allows to make more accurate assessments of future value Its a retrospective and prospective measure. This application of this factor for affecting salary increases is accordingly adapted in our local context of the employees in K and above Grades & those in L, M & N Grade and appropriately communicated at the time of salary revisions.

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External Competitiveness
It helps in Assessment of the remuneration of the particular role with that of the similar roles in the competitors companies. Competitor Companies include those, which are Global Consumer Goods Have similar revenue or staff sized Credible remuneration data should be based upon market salary surveys. The salary surveys mainly cover FMCG companies. And in local context they cover the following companies Unilever ITC P&G Glaxo SmithKline Coca-Cola Pepsi Cadburys Colgate Marico etc. It also covers some companies in Banking and financial services (Currently Citibank, American Express, GE Money etc.), Telecom, Insurance and Pharmaceuticals are considered for relevant jobs. On broad basis, Nestle compensation approach is to position between 50th and 75th percentile of the market remuneration levels.

Internal Equity
This is a measure of salary levels between Employees within the Company. This comparison is based on differences in Skill set Performance This helps in reasonable distribution of salaries within a range. In internal grading structure also assists in making these comparisons between jobs of different skill sets but similar size.

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Salary history
In this a note of any recent salary adjustments are made which are given to the Employees within the past year like As a result of promotion Regarding New appointment Transfer etc This is not done in order to prejudice the employee by previous adjustments. It simply requires that we are mindful about the pace of salary adjustments during employment.

Incentive Schemes in Nestle

The Incentive schemes practiced in Nestle are as follows

Sales Incentive Scheme

It is an performance based Scheme for sales personnel Performance evaluation is done on monthly/Quarterly an annual basis It is designed to drive in market execution It is structured with focus on - RIG achievement - Redistribution turnover - Bad goods - Trade spends The grade-wise incentive entitlement at 100% achievement level is as follows for eligible employees: L & M Grade : 30% or 18.08% of fixed salary (as per the role)

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Professional Merit Scheme

This scheme is for Nutrition Division Field operations Nutrition Training personnel This is mainly aimed at enhancing the professional competencies and Quality of professional detailing skills in the nutrition division. This scheme does not in any way Promote/ incentivizes our personnel on sales of Infant foods/ Formula. This scheme primarily focuses on the nutrition knowledge accessed via Nutrition Quiz Criteria Field Operations Criteria Need Gap analysis report as per the PMS guidelines. The per annum Maximum payout for the professional Merit scheme for eligible employees is as follows: M Grade L Grade : : 22% of fixed salary 22% of fixed salary

This scheme is in consonance with the Indian code (namely Infant milk Substitute Act)/ WHO code. Medical Detailing/ Field Operations activities/ Nutrition training is/ is conducted in the context of unsuitable alternatives as in: Unmodified Bovine milk Homemade PAPS

Performance Bonus Scheme

Performance Bonus is an annual Bonus where the Payouts are decided basis the yearly performance at the company, Unit/ Department & team/ Individual levels. Payouts normally happen in the 2nd Quarter of the following year after evaluation of all parameters. Employees at N & above grade are eligible for this scheme as under: All employees in L & M Grade who are not eligible under the sales incentive scheme and PMS, are eligible under this scheme Maximum bonus payout under this bonus scheme is up to 18.08% for employees in sales team (Activation, Sales training, Channel, Key accounts etc.) and 12% of fixed salary for other employees

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REWARD AND RECOGNITION SCHEME

Seek the peak Award- Individual (Quarterly)

Seek the peak individual awards is to recognize individual employees who reflect Dream, Dare, Deliver mindset in their responsibilities.

Number of Awards There will be up to 26 Awards per quarter 2 Awards per Branch 2 Awards per Factory 4 Awards for moga 4 Awards for Head office

Recognition Monetary Award of Rs. 15,000/The above Awards will replace the existing Passion to Win individual awards (quarterly)

Passion to win Award-Team (Annual)

The purpose of these Awards is to recognize any exceptional achievement through team work with an emphasis on Team spirit, Business Impact, Innovation, Speed/Perseverance and Flawless Execution. All Factory managers/ Branch Managers/ Departmental Heads at HO, will send the nominations of teams at their respective units/ Departments to HR, through their respective heads in Management committee. The number of Awards per annum will be limited to 4, to be distributed as follows: o 1 Across all Factories o 1 Across all Branches

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o 1 Across all Business groups o 1 Across all corporate functions Each individual team member of the winning team will receive a trophy and a recognition certificate during the Key managers conference. Any gifts, distributed either as a reward or recognition for celebration of events/ achievements other than those mentioned above, need to be approved by the market head

Super Achievers Scheme- Individual (Half yearly) The purpose of Super Achievers Scheme is to recognize individual performance on a
half yearly basis at the branches. The scheme focuses on something exception with a clearly defined parameter for different roles in the Branch and cut across all the functions. In order to know more please contact branch HR manager.

Long service Award

Long service is recognized and awarded on completion of 5, 10, 25 & 35 years of continuous service with the company. The purpose of this recognition is to celebrate the completion of 5 years of service with Nestle. The line manager would be responsible for celebrating this milestone of his associate. The recognition is in the form of a team celebration/get together. The celebration will be within an allocated budget of max Rs.5000/-

On completion of 10, 25 and 35 years of continuous service in the company long service Awards are bestowed on employees in annual functions that are held at each unit.

Duration of service
10 years 25 years 35 years

Awards/Gifts
Service certificate & Gold coin (10 gms) Service certificate & Gold Pendant (25 gms) Service certificate, Silver Plaque & gold Pendant (10 Gms) with gold chain (17 Gms)

The procurement of the awards is coordinated at head office.

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APPLICATION FOR STAFF LOAN

EMP. CODE. :NAME :-

DATE OF JOINING/YEARS OF SERVICE WITH NESTLE

DESTINATION/LOCATION

AMOUNT OF LOAN APPLIED FOR

PURPOSE OF LOAN

APPLICANTS SIGNATURE

DATE

PAST LOANS TAKEN (ALL KINDS) :

YEAR PURPOSE AMOUNT TAKEN AMOUNT OUTSTANDING YEAR LOAN CLEARED

Recommendation

SIGNATURE

DATE

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APPLICATION FOR VEHICLE LOAN

PERSONAL DETAILS EMP. CODE :-

NAME :-

DESIGNATION

LOCATION

LOAN DETAILS PURPOSE

(Purchase of new/second hand car/scooter/motorcycle)

AMOUNT OF LOAN APPLIED FOR

DETAILS OF PURCHASE MODEL/YEAR OF MANAFACTURE

PRICE

( Mention of first time insurance and road tax separately)

DETAILS OF PREVIOUS LOAN TAKEN LAST LOAN TAKEN ON

LAST LOAN CLEARED ON

SALE OF OLD VEHICLE MODEL/YEAR OF MANAFACTURE

YEAR OF PURCHASE

SOLD FOR/ EXPECTED PRICE

APPLICANTS SIGNATURE

DATE
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NESTLE INDIA LIMITED LEAVE TRAVEL ASSISTANCE CLAIM FORM

FORM B

Name__________________________Designation___________________________Emp CODE CERTIFICATION

This is to certify that I have incurred a sum of Rs._______________ on performance of travel by myself and my family (i.e. spouse,children and wholly or mainly dependent parents,brothers & sisters) from______________ to ______________ and back (origin and destination of travel) while on leave from ____________ to ___________ as per particulars given below.It is requested that I may be reimbursed the amount payable under the Companys LTA scheme after adjusting the advance of Rs. ______________ received by me on ______________ 200 PARTICULARS OF TRAVEL 1. 2. 3. 4. Period of travel from ____________to___________ Calendar year of entitlement___________________ Block Calendar Year 200 to 200 Place of Posting __________________

DETAILS OF TRAVEL
Name of Persons travelled Age Relationship From to (and return) Kms (Both ways) Mode of Class Of travel Actual fare per head (both ways)

Total _____________________ Further certify that the LTA is the 1st /2nd/3rd/4th LTA admissible to me in respect of journeys performed in the block of calendar years 200__ to 200__ including those LTAs, if any, received in my previous employments in the above block The bills/supporting pertaining to the above journey is in my possession and I undertake to submit the same to you as and when the tax authorities require the same. ( Signature of the employee)

Please submit the form later than one week of completion of journey.
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Please fill up the form completely and strike off particulars not applicable.

To be filled in by the employee :

PARTICULARS OF FARE FOR COMPUTATION OF TAXIABLE PORTION OF LTA

Points of journey

Distance by Particulars of journey Fare per head (both ways) Shortest route (in Please provide fare against the by shortest route by relevant line of mode and class of specified route Kms both ways)
travel as detailed below

Origin Destination

&

1. By Air- Economy class fare 2. By Rail- AC 1st Class fare 3. Deluxe Class bus fare (where recognised public transport system exists) 4. Equivalent of 1st Class AC rail fare (where no recognized public transport system exists

Adult Class

No. of adults ______________ Total Fare ______________ No. of children ______________ Total Fare ______________ Amount ______________ Grand Total
______________

ACCOUNTS DEPARTMENT 1. Maximum amount admissible under_______________ LTA rules _________________ 2. Actual amount incurred 3. LTA advance 4. Balance payable (1-3) 5. Entered on page no. 6. Amount exempt u/s 10(5) of IT Act Rs.____________________ 7. Balance taxable (item 1 minus item 6) Rs.__________________

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TRANSFER ALLOWANCE CLAIM CUM TRANSFER DETAIL FORMAT

NAME :______________________ DESIGNATION :______________________ EMP. CODE:______________ NEW UNIT/ LOCATION: _______________________ PREVIOUS UNIT/LOCATION:______________________ JOINED THE NEW UNIT EFFECTIVE : ____________________________________

TRANSFER ALLOWANCE REQUEST KINDLY ARRANGE TO PAY ME TRANSFER ALLOWANCE ON MY TRANSFER AS PER COMPANY RULES. . FOLLOWING ARE THE DETAILS REGARDING HOTEL STAY/OWN ARRANGEMENT FOR TRANSFER. (PLEASE TICK THE RELEVANT CATEGORY)

HOTEL STAY

OWN ARRANGEMENT

DETAILS OF HOTEL STAY AT BOTH LOCATIONS FOR TAX PURPOSE OLD LOCATION : EXPENDITURE(INCLUDING BOARDING & LOADGING IN CASE THE STAY IS MORE THEN 15 DAYS HOTEL NAME:___________________________ FROM (DATE):___________ TO (DATE):___________ TOTAL DAYS___________ NEW LOCATION: HOTEL NAME_________________________________ FROM (DATE)__________ TO (DATE): _____________ TOTAL DAYS ______________ GRAND TOTAL (DAYS)_____________ TOTAL EXPENDITURE: RS._____________________ GRAND TOTAL RS. ___________________________ TOTAL EXPENDITURE: RS.____________________

DETAILS ON BHATTA ON CASE OF OWN ARRANGEMENT FOR TAX PURPOSE OLD LOCATION : FROM (DATE):______________ TO (DATE):______________ TOTAL DAYS ________________ NEW LOCATION : FROM (DATE):_______________ TO (DATE):_______________ TOTAL DAYS _________________ GRAND TOTAL (DAYS)_________________ TOTAL BHATTA CLAIMED RS. _______________________ GRAND TOTAL RS.______________________ TOTAL BHATTA CLAIMED RS. _______________________

DETAILS ON AVAILMENT OF COMPANY LEASED HOUSING/HRA. (APPLICABLE ONLY FOR EXECUTIVES & ABOVE) STATUS IN PREVIOUS LOCATION : CLA/HRA: ________________ AMOUNT (RS. P.M.) ________________ CLA/HRA : ________________ EFFECTIVE DATE ________________ AMOUNT (RS. P.M.) ________________

STATUS IN CURRENT LOCATION: THANKS & REGARDS, (SIGNATURE OF THE EMPLOYEE) DATE; ______________________

SIGNATURE OF HOD/UNIT CONTROLLER: ________________________ DATE: _________________________

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