1. Overview of Retirement and Social Security Benefits Presented By: Jehangir Daruvalla

2. Summary Statutory Benefits Statutory Benefits Provident Fund Provident Fund Employee Deposit Link Insurance (EDLI) Employee Deposit Link Insurance (EDLI) Statutory Gratuity Statutory Gratuity Employee state Insurance scheme (ESIC) Employee state Insurance scheme (ESIC) Non –Statutory Benefits – Insurance Non –Statutory Benefits – Insurance Group Medical Insurance & Accident insurance Group Medical Insurance & Accident insurance Group Life insurance Group Life insurance Self funded Parental Medical insurance Self funded Parental Medical insurance Non –Statutory Benefits – Other Non –Statutory Benefits – Other Company Lease accommodation (CLA) Company Lease accommodation (CLA) Personal Lease accommodation for Deposit on Housing. Personal Lease accommodation for Deposit on Housing. Employee stock purchase program (ESPP) Employee stock purchase program (ESPP) Long Service Award Long Service Award Health and Well Being Health and Well Being

3. Provident Fund 12% of basic salary deducted from employee and equivalent contribution made by employer 12% of basic salary deducted from employee and equivalent contribution made by employer From employer’s contribution (12% of basics) 8.33% of basic or INR 541 whichever is less is diverted towards Employee’s Pension Scheme From employer’s contribution (12% of basics) 8.33% of basic or INR 541 whichever is less is diverted towards Employee’s Pension Scheme Provision for voluntary contribution for employee (VPF) Provision for voluntary contribution for employee (VPF) Interest is paid on monthly running balance on employee and employer contribution, as per prescribed rate by RPFC office (current year proposed at 9.5%) Interest is paid on monthly running balance on employee and employer contribution, as per prescribed rate by RPFC office (current year proposed at 9.5%) Provision for partial withdrawal benefits (PF NRL) for various purposes (House purchase / Construction of house etc) as per PF rules. Provision for partial withdrawal benefits (PF NRL) for various purposes (House purchase / Construction of house etc) as per PF rules. Provision for withdrawal of PF dues upon leaving the firm, provided that member remains unemployed for more than 60 days, however the amount is taxable if contributing PF membership is less than 5 years Provision for withdrawal of PF dues upon leaving the firm, provided that member remains unemployed for more than 60 days, however the amount is taxable if contributing PF membership is less than 5 years Provision for transfer of PF dues from previous employer to new employer by submitting From No.13 to get the continuity in PF membership Provision for transfer of PF dues from previous employer to new employer by submitting From No.13 to get the continuity in PF membership

4. Employees Deposit Linked Insurance Employees Deposit Link Insurance (EDLI) is part of PF benefit that provide Life insurance coverage up to a sum of Rs 1.00 lac in case of death of an employee while in employment, the EDLI amount is paid to the Nominee as per PF form No 2 details. Employees Deposit Link Insurance (EDLI) is part of PF benefit that provide Life insurance coverage up to a sum of Rs 1.00 lac in case of death of an employee while in employment, the EDLI amount is paid to the Nominee as per PF form No 2 details. Under PF rules employer’s have the option to apply for Exemption from Govt. EDLI scheme, if they obtain an EDLI policy from a private Insurance Company in lieu of Govt. EDLI scheme. One of the condition laid down by RPFC is that the benefits provided under private Insurance policy needs to be at par or better then the Govt. EDLI scheme. Under PF rules employer’s have the option to apply for Exemption from Govt. EDLI scheme, if they obtain an EDLI policy from a private Insurance Company in lieu of Govt. EDLI scheme. One of the condition laid down by RPFC is that the benefits provided under private Insurance policy needs to be at par or better then the Govt. EDLI scheme.

5. Statutory Gratuity On completion of 5 years of continuous service an employee will be eligible for gratuity on retirement, resignation or disablement due to accident or disease. On completion of 5 years of continuous service an employee will be eligible for gratuity on retirement, resignation or disablement due to accident or disease. Gratuity is also paid on death due to accident or disease, while in service, to the pre- appointed nominee, in such case completion of 5 years of service shall not be necessary Gratuity is also paid on death due to accident or disease, while in service, to the pre- appointed nominee, in such case completion of 5 years of service shall not be necessary Gratuity payable to an employee will be calculated at 15 days basic salary for each completed year of service, based on the last drawn basic salary with max. cap of INR 10 Lacs Gratuity payable to an employee will be calculated at 15 days basic salary for each completed year of service, based on the last drawn basic salary with max. cap of INR 10 Lacs i.e. Last Basic salary / 26 * 15 days * Years of service = Gratuity payment i.e. Last Basic salary / 26 * 15 days * Years of service = Gratuity payment In order to avail tax benefits on gratuity provisions in the books of account, generally Corporate form a Income tax approved Gratuity Fund Trust. The corpus of the Trust Fund can be managed by Insurance Co. or by the internal Gratuity Trust created as approved under Income tax rules. In order to avail tax benefits on gratuity provisions in the books of account, generally Corporate form a Income tax approved Gratuity Fund Trust. The corpus of the Trust Fund can be managed by Insurance Co. or by the internal Gratuity Trust created as approved under Income tax rules.

6. Employees State Insurance Scheme ESIC is deducted on ESIC salary* the current limit is less than or equal to Rs 15,000/- per month (*ESIC salary = Basic + HRA + Special Allowance + Conveyance + Shift Allowance + any allowance that is paid on monthly basis) excludes bonus & leave salary. ESIC is deducted on ESIC salary* the current limit is less than or equal to Rs 15,000/- per month (*ESIC salary = Basic + HRA + Special Allowance + Conveyance + Shift Allowance + any allowance that is paid on monthly basis) excludes bonus & leave salary. Employer to contribute @ 4.75% of the ESIC salary Employer to contribute @ 4.75% of the ESIC salary Employees to contribute @ 1.75% of their ESIC salary Employees to contribute @ 1.75% of their ESIC salary Employee can avail medical benefits through ESIC dispensary or hospital for self and his immediate family members enrolled under the plan Employee can avail medical benefits through ESIC dispensary or hospital for self and his immediate family members enrolled under the plan Employee once covered under ESIC, needs to contribute till the end of contribution period (April to Sep and Oct to March) Employee once covered under ESIC, needs to contribute till the end of contribution period (April to Sep and Oct to March) The due date for payment of ESI contribution is 21 st of the next month for current month deductions The due date for payment of ESI contribution is 21 st of the next month for current month deductions

7. Group Mediclaim & Accident Insurance Mediclaim Insurance: The policy covers for reimbursement of hospitalization expenses incurred by employees for self and their dependents ( similar to Mediclaim policy available in the market) The policy covers for reimbursement of hospitalization expenses incurred by employees for self and their dependents ( similar to Mediclaim policy available in the market) The sum insured depends on the Company policy and family floaters are also available in the market. The sum insured depends on the Company policy and family floaters are also available in the market. Generally dependents include spouse and up to 2 children (below 21 years of age) or certain corporate even cover employee parents. Generally dependents include spouse and up to 2 children (below 21 years of age) or certain corporate even cover employee parents. As per current IRDA rules medical insurance only covers Hospitalization expenses within India As per current IRDA rules medical insurance only covers Hospitalization expenses within India The policy may have provision for cashless facility The policy may have provision for cashless facility Accident Insurance: This policy provides insurance cover for accidental deaths and generally covers employees only. The coverage amount depends as per the corporate policy taken with the insurance Company. This policy provides insurance cover for accidental deaths and generally covers employees only. The coverage amount depends as per the corporate policy taken with the insurance Company. In the event of an accident (at work or otherwise) leading to permanent / temporary disability, certain disability amount is also paid by insurance company to the employee. In the event of an accident (at work or otherwise) leading to permanent / temporary disability, certain disability amount is also paid by insurance company to the employee.

8. Group Life Insurance Under this policy employees are provided Life Insurance cover up to a specified coverage amount in the event of unforeseen death (while at work or otherwise), the amount is paid to nominee of the employee. Under this policy employees are provided Life Insurance cover up to a specified coverage amount in the event of unforeseen death (while at work or otherwise), the amount is paid to nominee of the employee. Self Funded Parental Medical Insurance Recently few corporate have made a tie up with Insurance companies to help it’s employees to obtain a self funded insurance cover for its parents and in-laws, with the sole intention to help employees cover their dear ones as such policies are not easily available in the market Recently few corporate have made a tie up with Insurance companies to help it’s employees to obtain a self funded insurance cover for its parents and in-laws, with the sole intention to help employees cover their dear ones as such policies are not easily available in the market The enrollment will be at the discretion of the employee if he intends to cover his parents. The enrollment will be at the discretion of the employee if he intends to cover his parents. The premium is upfront paid by the corporate to the insurance company and later recovered through payroll in installments. The premium is upfront paid by the corporate to the insurance company and later recovered through payroll in installments. As the amount is paid by the employee he is eligible to claim tax rebates as per Income tax rules. As the amount is paid by the employee he is eligible to claim tax rebates as per Income tax rules.

9. Company Lease Accommodation (CLA) Certain Corporate support its employee’s by providing housing assistance in the form of Company Lease Accommodation in lieu of House Rent Allowance (HRA). Certain Corporate support its employee’s by providing housing assistance in the form of Company Lease Accommodation in lieu of House Rent Allowance (HRA). Company generally outsource this work to a broker as its requires skill handling of CLA case with landlord and regulators. Company generally outsource this work to a broker as its requires skill handling of CLA case with landlord and regulators. Company pays in advance security deposit and quarterly advance rent cheques to landlord Company pays in advance security deposit and quarterly advance rent cheques to landlord Minimum duration of the lease is generally 24 months Minimum duration of the lease is generally 24 months The organization will bear brokerage equivalent to, maximum of 1 month’s rent, at the start of the lease. The organization will bear brokerage equivalent to, maximum of 1 month’s rent, at the start of the lease.

10. Personal Lease Accommodation The policy supports outstation employees getting relocated, in the form of Depository Assistance for Personal Lease. The policy supports outstation employees getting relocated, in the form of Depository Assistance for Personal Lease. The Deposit benefit is generally provided to the employees in the form of a repayable loan through a designated Bank after submission of required documents The Deposit benefit is generally provided to the employees in the form of a repayable loan through a designated Bank after submission of required documents The amount extended as Depository Assistance is recovered in EMIs starting from the month in which the payment has been disbursed to the employees from his salary The amount extended as Depository Assistance is recovered in EMIs starting from the month in which the payment has been disbursed to the employees from his salary The brokerage amount is reimbursed by employer through payroll on actual and is subject to Income Tax The brokerage amount is reimbursed by employer through payroll on actual and is subject to Income Tax Generally, Corporate put a duration cap of 3 month from joining or relocation date to avail this kind of benefit. Thereafter employee has to manage on their own for personal accommodation. Generally, Corporate put a duration cap of 3 month from joining or relocation date to avail this kind of benefit. Thereafter employee has to manage on their own for personal accommodation.

11. ESOPs Typically, ESOPs are distributed to retain employee talent by Corporate. Typically, ESOPs are distributed to retain employee talent by Corporate. Employees are granted specific number of shares, which becomes exercisable upon attaining certain price or after specified period as defined in the plan document from date of grant which ever is earlier. Employees are granted specific number of shares, which becomes exercisable upon attaining certain price or after specified period as defined in the plan document from date of grant which ever is earlier. Upon Sale / Vesting of shares, net proceeds after recovery of appropriate Income tax the net amount is paid to the employee Upon Sale / Vesting of shares, net proceeds after recovery of appropriate Income tax the net amount is paid to the employee Employee is eligible to receive dividend on unvested stocks during restriction period which is paid through payroll as taxable income as per plan document. Employee is eligible to receive dividend on unvested stocks during restriction period which is paid through payroll as taxable income as per plan document.

12. Health & Well Being Long Service Appreciation Awards In order to acknowledge long and continuous service put in by employee’s, generally Corporate appreciate by providing long service awards in the form of valuable gift to its employee’s on completion of 5 / 10 years of service. In order to acknowledge long and continuous service put in by employee’s, generally Corporate appreciate by providing long service awards in the form of valuable gift to its employee’s on completion of 5 / 10 years of service. Annual Health Check Ups To manage high level stress under current work environment, Corporate are encouraging its employees to undergo periodical medical check through a tie-up with a designated clinic / hospitals To manage high level stress under current work environment, Corporate are encouraging its employees to undergo periodical medical check through a tie-up with a designated clinic / hospitals This benefit is generally for employees only and some times reasonable concessions are provided to family members for such check-up This benefit is generally for employees only and some times reasonable concessions are provided to family members for such check-up

13. Thank You