Employee Benefits At Eastern Bank Limited

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Employee Benefits At Eastern Bank Limited


Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior private commercial Banks in Bangladesh. Eastern Bank markets a wide range of depository, loan & card products. These products include different types of Savings & Current Accounts, Personal Loans, Auto Loan, Debit Card, Pre-paid Cards, Internet Banking, Treasury, Syndication, Corporate Banking and SME Banking services through a network of branches & centers countrywide. Eastern Bank has its presence in major cities/towns of the country including Dhaka, Chittagong, Sylhet, Khulna and Rajshahi. Tracing its origin back to 1992, EBL is serving the individual and corporate clientele alike with remarkable success offering innovative banking services since then.


To become the bank of choice by transforming the way they do business and developing a truly unique financial institution that delivers superior growth and financial performance and be the most recognizable brand in the financial services industry in Bangladesh.

Mission Statements

· Constantly challenge their systems, procedures and training to maintain a cohesive and professional team in achieving service par excellence.

· They will create an enabling environment and embrace a team based culture where people will excel.

· They will ensure to maximize shareholders’ value.

· They will deliver service par excellence to all our customers, both internal and external

The Values

· Openness

· Trust

· Commitment

· Integrity

· Service excellence

· Responsible Corporate Citizen


Management Structure

  • Board

Chairman and Members of the Board are appointed by the respective shareholders.

  • Chairman

The Chairman is appointed by the Board. He attends Board meetings and it is through him that the Board decisions are implemented.

  • Managing Director (MD)

The Managing Director, who is also the Chief Executive of the Bank is appointed by the Board, is responsible to the Chairman and the Board for all operations of the Bank. He attends Board meetings and he implements the Board decisions.

EBL Management Team or Management Committee (ManCom)

The EBL Management Team or Management Committee (ManCom) comprises of a group of eleven people and each of them comes with an international working background and is committed in leveraging their experiences to take EBL to greater heights by ensuring top line revenues with dynamic capabilities.

EBL ManCom is unique in being able to envision the need of the business by bringing in a mixture of advanced technology solutions know-how and revamping the organizational make- up for maximum profitability.

Other than the MD & CEO, the remaining ManCom Members each head a function viz

a. Consumer & SME Banking

b. Corporate Banking

c. Credit

d. Finance

e. Human Resources

f. Information Technology

g. Operations

This mix of people is persistent to provide unparallel service to its customers, come up with timely and innovative products and services and to enhance the capabilities of its people while emphasizing on the latest technology. This they believe will take the Bank to a leadership position in the country.

The objective of EBL ManCom is to drive the business to maximize the operational excellence and efficiency through acquisition of talent, developing systems, processes and people and through blending in of these to let customers revel in with fulfillment and permanency.

Job Levels

· Deputy Managing Director

· Senior Executive Vice President

· Executive Vice President Senior Vice President Vice President

· Senior Assistant Vice President First Assistant Vice President Assistant Vice President

· Senior Principal Officer

· Principal Officer

· Management Trainee

· Senior Officer

· Officer

· Supervisory Officer

· Junior Officer

· Sub-ordinate staff


Employee benefits are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges wages for some other form of benefits, this is generally referred to as a ‘salary sacrifice’ arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans.

Employee compensation includes wages or salary, commissions, incentives, overtime, and benefits. Benefits include holidays and paid vacations, insurance, health care, pensions, social security, disability payments, and services like credit unions, product or service discounts, legal assistance, travel clubs, and food services. For key personnel, the executive perquisites involve use of cars and airplanes, estate planning, entertainment allowances, and stock options

The purpose of the benefits is to increase the economic security of employees. After productivity, employee compensation is the most difficult employee relations issue for small business owners to manage. Employee benefits can help you develop a stable and productive work force but you must have effective cost and administrative controls.

In Eastern Bank Limited, employee benefits, which comprise one portion of the compensation package, are not intended to reward an employee’s individual productivity or performance. Effective job performance depends on the fulfillment of both motivation and maintenance needs. Motivation factors focus on the needs for achievement, responsibility, and recognition. Maintenance needs are satisfied by economic, physical, social, and security factors. Benefits are in the maintenance category, not motivational.

We have chosen this topic because, employees expect benefits, and the absence of benefits may cause dissatisfaction in Eastern Bank Limited. Employees may even seek another job that offers more benefits. Further, where motivational opportunities are limited, employee interest in benefits often increases.


Through the project we have learnt –

  • How employee benefits effect affect operating capital, employee productivity, product quality, profits, and taxes in EBL
  • How proper management of benefits to assure their advantageous use and cost effectiveness in EBL

· How Employee benefits can help you develop a stable and productive work force

  • What kind of benefits are available in a organization like EBL
  • How labor law is connected with employee benefits


Information are confidential could not be accurately obtained. Alike all other banking institutions, EBL is also very conservative and strict in providing internal information. In such cases, we have relied upon certain assumptions, which are only amateur estimates. Time constraint was another limitation restricting this report to be a more detailed and analytical one. Our interviewed persons are busy all the time and it was really difficult to get hold of all aspects of employee relationship issues.


In order to supplement our theoretical knowledge of Employee Benefits with practical exposure, we contracted with the Eastern Bank Limited and collected data regarding real life scenario.

Primary data collected by interviewing employees in Eastern Bank Limited and gathered the necessary information. It was a focused grouped interview.

The main sources for secondary data are the EBL website, annual report, books from AIUB Libraries, and different types of research journal from Emeralds are all consulted in understanding different theories and principles and formulating questions. The information thus collected from various sources was first organized and then analyzed to draw the conclusions.


A strong employee benefits plan is an essential part of an employee’s total compensation package. Employees gain by having easy and inexpensive access to important insurance coverage and having a way to fund their retirement. Employers benefit by having a happier, more productive workforce resulting in less turnover.

Many employers now pay for most, if not all, of the employees’ life, medical and disability insurance. The rapid escalation of benefits costs, as compared to the total expenditures of direct cash compensation, has caused business managers to become more diligent in controlling these costs and in getting better employee relations. As a prudent business manager, you must decide which employee benefits costs that you incurred or are considering can be better managed through more cost effective financing and administrative practices.

Examine all of the alternatives available when dealing with employees’ needs. Avoid making heavy financial commitments by agreeing to pay for most or all of the employees’ life, medical, and disability insurance coverage. For instance, it is financially desirable to avoid full coverage medical insurance, but the rising cost of medical care is a concern to everyone, and employees are looking closely at company health benefits. The trend seems to be to more medical benefits. Major medical coverage will provide the needed protection for catastrophic losses but this may not be enough health benefit to satisfy employees who are concerned and informed about health plans. Get employees to contribute toward some of these health costs.

Employers who hope to retain solid, hard-working employees should be prepared to offer basic employee benefits. In addition to salary, good benefits provide important resources that not only help build a positive working relationship between employer and employee but also promote good work habits and financial practices.

Employee benefits will vary depending on the employer, and it is important for business owners to carefully consider their options. For example, the type of industry in which your business falls will help determine the types of basic employee benefits important to your staff. A job that requires employees to work outside in inclement weather, for example, might offer more paid sick leave than an indoor office position.

Benefits should be designed with the help of an individual who is a competent planner and manager. Avoid doing exactly what other companies do as the primary reason for adopting a particular benefit. This approach could result in the blind leading the blind. You need an approach that allows you to offer employees benefits designed to meet your company’s and employees’ needs. For example, employees who are older and no longer have the responsibility of a growing family will have different requirements from those employees who have families. Also, employees whose spouses are employed and covered by another employer might be considered in such a way to minimize double coverage.

Types of employees benefits plans

Employee Health Insurance Benefits

The most fundamental of all basic employee benefits is health insurance, which should be provided so that staff members can visit the doctor when they fall ill. Not only does this help the employee save money, but it also helps the employer by encouraging staff members to get treatment, thus allowing them to return to work more quickly and not spread illness to the rest of the staff.

Employee health insurance benefits should include health plans that allow employees to visit doctors in close physical proximity and assist with prescription purposes. There are several different options available to business owners, from PPOs to HMOs, so it is important to consider each option carefully.

Paid Vacation

Employees who work all day, every day, without a break in sight, will generally be less productive on the job. Offering paid vacation as part of your benefits package will create a more positive work environment and will help your employees avoid burnout. According to Salary.com, there are several ways in which paid vacation can be structured.

For example, some employers offering basic employee benefits allow employees to “earn” paid vacation through years of service. It is also important to determine whether or not your employees will be allowed to carry over unused paid vacation days when a new year begins.

Paid Leave

Similar to employee health insurance benefits, paid leave allows sick employees to stay home and recover without jeopardizing their paychecks. Paid leave, like paid vacation, can take many forms. For example, maternity and paternity leave, examples of paid sick leave, are given to new parents who need to stay home with newborn children. Paid leave can also apply to employees who come down with the common cold or flu.

In some cases, these basic employee benefits are called “personal days,” which implies that they can be used for reasons other than injury or illness. Some employees simply need a mental health day to recuperate from the stress at work; personal days give them that option.

Retirement Plans

A retirement plan allows employees to prepare for their futures, securing their financial stability after they have aged out of the work force. Furthermore, it is easier for businesses to offer retirement benefits than most people think.

For small businesses, the Payroll Deduction IRA might be the easiest. According to the IRS, this type of retirement plan allows the employee to contribute to an IRA without the employer matching those contributions. This is best for employers with limited funds.

These basic employee benefits, from employee health insurance benefits to retirement plans, are all worth consideration. If your business doesn’t currently offer any compensation other than salary or hourly wages, you might find that your staff members are more loyal when you provide additional incentives.

Advantages of Benefits Plans

Recruitment and Retention

For the employer, a strong fringe benefits program coupled with an attractive salary can help attract talented employees. If existing employees are happy with features of their benefits plan, like low-cost health insurance, they may be more inclined to stay with the company.

Reduced Cost

Employees will usually find their benefits are cheaper through the company than if they tried to purchase them on the individual market. Group health insurance, for example, is less expensive than purchasing an individual policy from a private carrier. The employers benefit by being able to write off the cost of many benefits as a business expense on their tax returns.

Guaranteed Issue

When purchasing health, life or disability insurance on the open market, the employees are often subject to individual underwriting, which means they could be denied coverage for certain preexisting conditions. Employee benefit insurance plans, however, are typically subject to group underwriting and they will be guaranteed coverage regardless of medical history.

Availability of Options

Some employers offer several choices of benefits. For example, they may offer three or four different health plans with a variety of deductibles, or offer life insurance with a choice of several different amounts of coverage. This gives employees the opportunity to customize their benefits package to meet their specific needs.

Company Assistance

The employer handles much of the administrative work for the employee, which can save the employee from having to get deeply involved in paperwork and red tape. If an employee has a question or problem, they can contact the human resources department or plan administrator for assistance.



1. Salaries are confidential between the employees concerned and the Management.

2. Employees joining against a post will be receiving the salary as per the job level they join in. The employees who are on probation will be eligible to join the PF only after their confirmation. Management Trainee alone will receive a monthly consolidated salary during the probation period.

3. Salary increase which is linked with the performance of the individual employee per calendar year takes effect from 01st March of each year.

4. The annual salary revision is decided by the Managing Director with approval of the Board of Directors based on:

a. Individual Performance

b. Market movement

c. The Bank’s affordability

d. Individual’s relative position in a particular salary range

e. COLA (Cost of living adjustment)

Promotional Benefits

In the event of Promotion/Up- gradation to a higher Job Level, the employee will receive an increase of minimum 10% over his/her previous basic salary and all other allowances applicable in the higher level. However, the promoted employee will receive the minimum range of the level where he/she has been promoted.

In case the revised basic salary still remains below the starting scale of the new Job Level, the employee is then given the differential needed to place him/her at the starting basic salary of the new Job Level.


Salary increases are awarded once a year on the basis of increment policy to all regular employees who have performed satisfactorily in the given year for minimum period of (180) days of confirmed service. The employees who completed a minimum of 3 (three) months’ confirmed service will also be appraised/reviewed for the year; however no rating will be awarded to those. One may not receive any increment on a given year as a penalty on account of any offence/disciplinary measure. The confirmed employee who is in service with the Bank less than (180) days may be given the COLA portion, which is determined by rate of inflation and CPI (Consumer price Index) during that financial year. The COLA portion of increment will be decided by Management of the Bank in each year.

Increments are awarded to the employees as per Rating of the Annual Performance Appraisal at variable percentage of their existing respective basic salary including COLA portion.

Special Increment

Managing Director can award a merit increase to any employee, excepting two levels below the Managing Director depending on their exceptional performance as per Increment Policy.

The Managing Director is empowered to allow merit increase @ 2% more to any employee falling under each level of Junior Officer to Senior Principal Officer considering the Performance Appraisal.

Interim Salary Review/ Adjustment

Managing Director at his discretion can revise/adjust the salary package of employees except two level below of his designation for any special or extraordinary case in any time of the year.


Entitlement of Bonus

Subject to other provisions of the Human Resources Manual guidelines declared by the Management from time to time Bonus shall only be payable to the employees who would, at the time of declaration of Bonus, be in the service of the Bank and entitled to the same at that time.

Festival Bonus

The following Employees normally to receive festival bonus as under:

Employment Category Payment System
1. All regular Officers and Staff

Including Managing Director.

: One month’s basic pay both in Eid-ul-Fitre &

Eid- ul-Azha.

2. All regular Officers and Staff


: One month’s basic pay both in Eid-ul-Fitre &

Eid- ul-Azha or two months’ basic pay at the time of the main festival with the approval of the management.

3. Officers on HR Contract

i.e. Sales Team, Company

Secretary, Consultant and others.

: As per contract/50% of monthly consolidated pay
4. Officers/employees on probation

or who have not completed six(6) month’s service

: 50% of basic or 50% of consolidated pay.
5. Executives’ personal Drivers/

outsourced employees/workers

: Monthly consolidated wages

Officers and employees under any disciplinary action will not receive any festival bonus

Performance Bonus

The Bank may award performance bonus from time to time depending on the actual profit made in a given year. This bonus is subject to payment only upon Board approval.

This bonus will only be awarded to those who have completed 180 days’ (one hundred and eighty)’ confirmed service with the Bank and made significant contribution towards achieving the profit target over and above the normal target. The contribution measurement will be coming from the Performance Appraisal System.

The employees who are rated four (4) in the appraisal process are not eligible for Performance Bonus. In years when the Bank does not declare any dividends no performance bonus will be awarded. This is in compliance with Bangladesh Bank Regulations.

Housing: House Building Loan Scheme for EBL Employees

The EBL Board of Directors in its 305th Meeting held on December 21, 2004 has approved the Revised House Building Loan Scheme for the Employees.

· House Building Loan Scheme for EBL Employees

The Scheme shall be called the “Eastern Bank Limited Staff House Building

Loan Scheme”

· Eligibility criteria

The loan may be granted by the Bank to its confirmed employees under the Scheme provided that –

o He/she is a permanent member of staff and has a minimum 60 months’ service to retire

o The total loan amount of any particular borrower shall be determined in such a manner that the installments including contribution to P.F. altogether shall Not exceed 50% of his salary; or in other words, take home money after all deductions should not be below 50% of the salary.

o He/she has 5 (five) years of continuous service in EBL

o He/she has 5 (five) years of continuous banking service including 2 years in EBL

o His/her overall performance is considered satisfactory (not below rating 3)

o In case both the husband and wife are employees of the Bank, only one of them shall be entitled to avail loan under this Scheme.

· Operational area

The loan may be granted by the Bank

a) For purchase of land and construction of building thereon ; or

b) For purchase of a ready-made house/flat or a flat under construction; or

c) For repayment of the loan raised by him from his previous employer and/ or

d) HBFC for the house owned by him in his name or in the name of his wife;or

e) For construction of a building on the land already owned and possessed by him or his wife; or

f) for completion of an incomplete building owned by him or his wife; or

g) for extension or reconstruction of existing house owned by him or his wife

Provided the property (land & building) must be located within the Municipal/ Metropolitan City Area

The amount of the loan shall not exceed 80% of the total construction cost including registration of land and building or purchase price of ready- made house/flat within the availability of the ceiling against each level:

An additional loan may be granted only once to an employee during his tenure of service on his promotion to a higher level within the availability of the ceiling or completion of an incomplete house or for extension or reconstruction of the building provided the existing loan repayments are regular and security/documentation is in order.

· Rate of interest

Rate of Interest: 3% (three percent) subject to change

· Mode of disbursement

The loan shall be disbursed, preferably in phases, in following categories as determined by the Management from time to time.

Category A For construction of building on own land

Category B For purchase of land and construction of building

Phase one : Not exceeding 50% of the purchase price (including
registration cost) of land
Other Phases : As applied for construction of a building

Category C For purchase of readymade house/flat/Apartment

All payments to the seller of land and/or building/flat shall be made directly by Pay Order/

Demand Draft on production of documents/evidences to the satisfaction of the Bank.

In all cases required equity portion of the employee must be invested first and the evidence thereof shall be provided to the Bank for availing of the loan.

All Deeds, Agreements, Documents relating to the land property shall be checked and verified by Bank’s solicitor to determine its title before disbursement of the loan at borrower’s cost.

· Security

Legal mortgage of the land and building (constructed or to be constructed) thereon or the flat supported by registered Power of Attorney authorizing the Bank to dispose of the property without intervention of the court.

Personal Guarantee of the concerned employee in the case loan is sanctioned and disbursed in the name of his wife/husband as the case may be.

A Letter of Authority shall be provided authorizing the Bank to deduct and realize the loan amount with interest in case of need from the Provident Fund balance, Gratuity, Superannuation Fund and other End-Service benefits and credit balance held in the account, if any, and the Bank can sell the property of the concerned borrower.

· Repayment arrangement

Repayment of the loan shall be made within maximum 20 (twenty) years and the retirement of the borrower whichever is earlier. The installment shall be fixed in Equal Monthly Installment (EMI) basis. The installments shall commence and fall due as under:

· In case of Construction of Building

– Loan repayment to start immediately from next month from the date of first draw-down or

– Maximum after 18 (eighteen) months from the date of first drawdown (if applicable)

· In case of purchase of readymade flat/building

– Loan repayment to start immediately from next month from the date of first drawdown or maximum after 12 (twelve) months from the date of first draw down in case the flat /building is under construction.

– The installments/repayments so made shall go for servicing the interest first. The Bank, however, may revise and determine the repayment and interest term(s) afresh based on the merit of the individual loan case.

– The borrower may, at his option, repay the loan installments at an accelerated rate and/or repay the entire dues at a time before its expiry.

· Drawdown

Full drawdown of the loan should be made and the construction of the house shall have to be completed within a reasonable period but not exceeding 18 (eighteen) months from the date of drawdown. Interest will be on Commercial Rate.

· General provision

In case the borrower retires or dies in harness, the rate of interest on outstanding loan amount will continue as Commercial rate till full adjustment of the loan as per sanction terms, unless otherwise decided by the EBL Board of Directors.

If the employee resigns, is removed/terminated or dismissed from the Bank’s service or his service is otherwise determined by the Bank before full repayment of the loan together with interest thereon, the outstanding amount shall become automatically due for payment the day he would cease to be in the service of the Bank. His service benefits will be appropriated toward adjustment of the loan outstanding. A Letter of Undertaking as per Bank’s format in this respect will have to be executed by the borrower before disbursement of the loan. The shortfall amount, if any, shall carry interest at commercial rate from the day he ceases to be in the service of the Bank until the entire outstanding is fully adjusted.

The sanctioned loan amount in total for all incumbents will be allowed at maximum

0.5% of the total Advance of the Bank.

The terms and conditions for taking over the House Building Loan from other bank /financial institution will be determined by the Managing Director at his discretion in case of lateral entry.


· Company vehicle entitlements

As per existing rules, the Managing Director and the Deputy Managing Director are entitled full time cars, drivers and fuel at actual cost.

The entitlement of official vehicles for the contractual staff in senior level will be at the discretion of Managing Director and as per the terms and conditions of the contract.

· Car Loan Scheme

The Board of Directors in its 297th Meeting held on September 07, 2004 has approved the Revised Car Loan Scheme – 2004 for the EBL Employees. The Scheme shall be called the “Eastern Bank Limited Car Loan Scheme”

· Eligibility and Operational Area

The loan maybe granted by the Bank to its confirmed employees under the Scheme provided that

– He is a permanent employee of the Bank and has minimum 60 months’ service to retire

– Both the Officers are entitled if the husband and the wife are employees

– The total loan amount of any particular borrower shall be determined in such a manner that the installments including contribution to P.F. altogether shall not exceed 50% of his gross salary; or in other words, take-home money after all deductions shall be at least 50% of the gross salary

· Non-Eligibility

– Employees using Bank’s Cars are not eligible for the above Loan Scheme.

– An Employee is not entitled to purchase a Micro-Bus within this Scheme

– The scheme is designed to inspire and motivate the employees for rendering their best services and accelerating marketing drive towards rapid growth of the bank.

The Existing Car Loan Facilities are as follows:

Levels Existing Ceiling Monthly Car Facilities






SEVP To 12,50,000.00 To 44,020.00 To 23,020.00 To 21,000.00
EVP To 10,00,000.00 To 37,416.00 To 18,416.00 To 19,000.00
SVP To 9,00,000.00 To 32,574.00 To 16,574.00 To 16,000.00
VP & SAVP To 8,00,000.00 To 23,733.00 To 14,733.00 To 9,000.00
FAVP & AVP To 7,00,000.00 To 20,891.00 To 12,891.00 To 8,000.00

· Rate of Interest

Interest Rate is 4% (four percent) per annum

· Repayment Arrangement:

The loan shall be repaid within 5 (five) years from the date of disbursement on monthly installment basis to be deducted from his salary and/or from other sources. The Bank may, however, refix installment for recovery of the loan within the validity period.

Maintenance Facility

An employee shall be entitled to Car Maintenance Facility as mentioned against each of the above levels in the event he owns a Car from his own sources or Bank borrowing under this Policy. The car must be in running condition to avail the facility.

The borrower may, at his option, repay the loan and the interest thereon in installments at a higher rate than that to be calculated or he may repay the entire amount due for repayment at a time whenever he likes.

· Security

The loan shall be secured:

– By hypothecation of the Car for which the loan is granted. The Car shall be comprehensively insured and be registered in the Joint Names/Hire Purchase basis of the Bank (as mortgagee) and the borrower.

– By executing a Letter of Authority authorizing the Bank to realize the loan amount including up-to-date interest in case of need from the P.F. balance, gratuity, other End-Service-Benefits and Sale Proceeds of the Car, if any, and credit balance held in the account of the concerned borrower. The shortfall amount, if any, shall carry interest at commercial rate from the day he ceases to be in the service of the Bank until the entire outstanding is fully adjusted.

· General Provisions

The borrower shall pay all stamp duty, registration charges and other incidental expenses in connection with any document required to be executed by the borrower for the loan.

The car must be covered by comprehensive insurance with any approved Insurance Company in the joint names of the bank (as mortgagee) and the borrower. The hypothecated Car should be kept in a good condition to the satisfaction of the Bank till the entire loan amount and interest thereon are repaid. It shall remain open for inspection by any Officer of the Bank deputed for the purpose. A twenty four hours notice in writing shall be given to the borrower by the Bank for such inspection.

The borrower must utilize the loan amount for the purpose for which it is availed of. The Bank shall grant and disburse the loan by Pay Order directly in favor of the seller after satisfying itself of the valuation of the Car submitted by the borrower from the local Automobile Agents or Automobile Association or any other Agencies acceptable to the Bank.

The borrower may dispose of the Car with the written permission of the Bank provided the loan and its up-to-date interest are fully paid prior to sale/transfer

In case the Employee resigns or retires or dies or is terminated, dismissed, retrenched or for any other reason he is not in the service of the Bank, the entire loan amount shall become automatically due for payment immediately, notwithstanding the provisions of Scheme and/or notwithstanding whether such resignation, discharge, retirement, termination or dismissal is legal or illegal.

An Agreement should be made between the Bank and the Borrower in the form prescribed by the Bank incorporating, inter-alia, the above points.

The loan sanction power under the Scheme shall be exercised by the Managing Director after satisfactory processing from the Human Resources Department based on

(a) Seniority,

(b) Performance and

(c) Bank’s interest involved etc.

Acceptance of Car Loan Application and its sanctioning shall be entirely at the discretion of the Management whose decision in this matter shall be final. However, Car Loan cannot be claimed as a matter of right.

The Management reserves the right to change/modify the terms and conditions and/or call back the loan/car amount any time at its discretion without assigning any reason whatsoever.

The Board of Directors at any time may review, alter or amend the term(s) of this Scheme or discontinue the facility at its discretion.

· Vehicles allotted to Branch

Official vehicles will be attached with every seven (7) outstation Branches. The main purpose of this vehicle will be for bank/official purpose like cash carrying, customer call, Bangladesh Bank/Sonali Bank transactions, Head Office Executives’ duties during their visit to outstations.

Driver’s Wage : To 4,200/- to 6,000/- per month

Fuel Limit : At actual but not exceeding 250 Liters per month

Routine Maintenance : To 1,500/- (maximum) per month.

For major maintenance, insurance, various taxes etc. will be approved by HO on need basis.

For any emergency personal or family purpose if the branch vehicle require to move out from the branch to other town within the country, prior permission will be required from HR department.

Furniture & Equipment Allowance

As per existing rules, the Furniture and Equipment Allowance of the Managing Director and the Deputy Managing Director are determined by the Board of Directors. Furniture and equipment allowance is given only to employees belonging to the Senior Executive Vice President, Executive Vice President, Senior Vice President and Vice President Levels as per following:

This entire amount will be paid for a period of five (5) years which will be amortized using standard average method of calculation. In case of separation from the services of the Bank, the outstanding amount, if any, will be adjusted from his/her End-Service Benefits Settlements.


Allowance for Telephone which is a part of monthly salary package is given below:

Reimbursement will be made for residential phone and for local calls and other associated charges. The Managing Director has the discretion to approve the Mobile Phone bill to any employee for functional reasons.

Medical Facilities

All regular employees of the Bank are entitled to Hospitalization bills and Maternity charges in the following manner:

· Hospitalization Reimbursement

i. The above facility will be limited only to the confirmed employees and his/her immediate family members which include wife/husband and dependent sons and daughters only. Children attaining 18 years of age or on getting married, whichever is earlier, will not be entitled to reimbursement of the cost of medical treatment.

ii. For hospitalization/surgical treatment, the Bank will reimburse two (2) basic salaries for self/spouse/children up to the age of 18 years which may be exhausted in two cases of hospitalization/surgical treatment and diagnostic purpose during a year.

iii. The claim of hospitalization bills must be supported by original bills of reputed hospital/clinic in Bangladesh or overseas acceptable to the Bank, along with their admission/discharge certificate, cost of medicines and various medical examinations, if any. The claim should be submitted within 1 (one) month from the date of discharge.

iv. Prior approval from the Human Resources Department through respective Departmental/Divisional Heads/Unit Heads and Sales & Service Managers must be obtained before being hospitalized other than extreme and emergent circumstances.

v. The respective Unit Heads will verify and scrutinize all relevant papers before recommending the bill for Head Office approval. Only on being satisfied by the Unit Heads regarding the authenticity and genuineness of the bill, the same shall be forwarded to the Head of Human Resources along with explicit recommendation for approval. It is the absolute responsibility of the recommending officer(s) to verify the genuineness of the bills. Any falsification of vouchers/truth shall cause disciplinary action of any nature as deemed fit by the management.

  • Maternity

Maternity bills are reimbursable subject to a maximum of two months’ basic pay for 2 (two) children. This facility is admissible for two children during the tenure of services of an employee at Eastern Bank Limited.

  • Expenses not claimable

The Management will not reimburse the following expenses:

· Dental treatment

· The supply of spectacle

· Childbirth expenses in excess of a total of two children

· Children exceeding 18 years of age

· Circumcision


The following categories of leave are given to all employees of Eastern bank.

· Annual Leave/Privilege Leave

· Sick Leave

· Maternity Leave

· Extra ordinary Leave

Annual Leave

  1. “Annual Leave” means any working day’s leave taken by a permanent employee.
  2. Every employee shall earn Annual/Privilege leave with full pay after completion of one year service. The entitlement of maximum annual Leave is 28 (Twenty eight) days in a working days. Annual/Privilege leave will be accumulated up to maximum ninety (90) days and leave accumulated more than ninety (90) days will be lapsed.
  3. Every employee shall have to avail at least 15 (fifteen) days privilege leave every year. Any extension of leave will be at the discretion of competent authority.
  4. Annual leave entitlement is based on a current year calculations from January 1 to December 31 each year. Bank Management encourages staff to enjoy and avail leave, as such, all Dept/Unit Heads will be required to prepare a leave roster for his/her total employees by of January 20 every year and submit the same to Human Resources Department. It is responsibility of the respective Dept/Unit Heads to ensure that the staff within his unit enjoys leave as per leave roster throughout the year.
  5. An employee joining the Bank will be entitled to pro-rata leave based on the joining date of first year.
  6. An employee who leaves the Bank will be entitled to leave encashment calculated on a pro-rata basis for the current year or maximum of (90) days.
  7. Leaves of the Departmental/Divisional Heads will be sanctioned by the Deputy Managing Director/Managing Director and leaves of Sales and Service Managers will be sanctioned by the Head of Consumer Banking and leaves of the other employees will be sanctioned by the respective Departmental Heads. Human Resources Department, Head Office will process the leave applications and maintain the leave accounts of the Departmental/Divisional Heads/Sales and Service Managers and all Head Office employees for sanction of leave while the same for the other employees of a Department/Division/ Branch will be approved by the respective Departmental/Divisional Heads/Sales and Service Managers. Any employee applying leave for traveling abroad will require prior approval from Deputy Managing Director/Managing Director. Leave cannot be claimed as a matter of right, and leave admissible under these rules may be granted by the management who may refuse leave, grant leave for a shorter period than applied for, revoke leave of any description and recall an employee before the expiry of his leave due to emergency of official work.
  8. All employees shall resume duties on the expiry of leave as initially granted or as subsequently curtailed or extended. If the leave needs to be extended, it has to be notified in writing to the concerned Dept. Heads with a copy to Head of HRD, HO.
  9. An employee who was granted leave on medical ground shall not return to duty without first producing a certificate of fitness from an acceptable medical authority. Provided that no such certificate shall be necessary if the leave was for 3 days or less.

Sick Leave

Sick leave will be given on the basis of actual need of staying away from work due to illness. This shall however, not exceed 14 days in a calendar year.

  1. When applying for Sick Leave, an employee must apply on a Leave Application Form, through proper channel. Application for Sick Leave for more than 3 (three) days must be accompanied by a medical report and prescription from his/her attending physician.
  2. In case of serious illness, the concerned Department Head must maintain regular contact by briefing his/her condition to HRD, HO until he/she has returned to duty with HRD, HO.
  3. A prolonged sick leave other than the admissible ones will be adjusted from accumulated leave which can be a maximum of 180 days without pay.

Maternity Leave

Only the confirmed female employee will enjoy maternity leave for 45 (forty five) days immediately proceeding and 45 (forty five) days following the date of delivery) with admissible benefits. This leave will not be debited from her leave account. A certificate from a doctor will be required at the time of applying maternity leave stating the expected date of delivery.

The extension/continuation of maternity leave for more than 1(one) month may be granted/allowed by the Deputy Managing Director/ Managing Director on submission of medical certificate with full pay. The extension/continuation of leave will be treated as Leave without Pay if she does not have sufficient leave balance in her account.

The employee with less than six (6) month’s of service with the Bank may enjoy maternity leave at the discretion of Deputy Managing Director/Managing Director, but in that case her leave will be treated as leave without pay. This leave shall, however, be allowed only twice in the entire period of service.

Extraordinary Leave

Extra Ordinary Leave can only be granted to an employee on an emergency case when no other leave is available to him/her leave account. The duration of extraordinary leave shall be so regulated that the period of total leave including all other leave does not exceed the maximum 90 days. Managing Director at his discretion can approve the extraordinary leave up to 180 days without pay.

This will be given only once during the entire tenure of service with the Bank. Employees who have completed minimum five (5) years of continuous service with the Bank are only eligible for this leave.

No pay, allowances and other benefits shall be admissible during the period of extraordinary leave unless otherwise decided by the Board. The period spent on extraordinary leave (unless otherwise decided by the Board) shall not be counted towards active service and increments.

Leave Fare Assistance

Leave Fare Assistance (LFA) as per level shall be allowed to an employee once in a year when he/she will be proceeding on annual leave. To encash LFA one has to avail a minimum of 6 (six) days leave at the time of application for LFA. Proportionate amount will be deducted in the event of an employee leaves the Bank after availing the LFA.

The Managing Director/Deputy Managing Director may allow disbursement of the same to an employee without any leave, if such leave could not be allowed to an employee in the greater interest of the bank, and at any time he/she may post-avail that sanctioned leave before March next year.

HR Compliance Leave

All employees should avail a minimum of 15 days leave in a calendar year to ensure compliance with the HR policy, while availing leave an employee should enjoy minimum 5(five) days leave at a time. Any employee availing leave is not allowed to attend office during leave period unless he/she is called for any urgent /emergency work by his/her line Manager.


The following travelling and daily allowances shall be admissible to the Bank’s Employees for travelling on duty or on transfer:

  • Traveling Entitlements

Group of Employees

Group ‘A’ Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice resident

Group ‘‘B’ Senior Vice President

Vice President

Group ‘C’ Senior Assistant Vice President First Assistant Vice President Assistant Vice President

Group ‘D’ Senior Principal Officer Principal Officer Management Trainee Senior Officer


Group ‘E’ Junior Officer – Supervisory Officer

Group ‘F’ Sub-ordinate Staff

  • Expenses Admissible On Transfer

An employee shall, on transfer from one station to another, be entitled to:

Fares of Train, Steamer or Air (of a class to which an employee is entitled while travelling on tour) for self, spouse, dependant children and one servant traveling with him/her or within three months of his/her transfer. Approval from the competent authority shall be required.

Employee under Group A = At Actual (to be supported by bills & vouchers)

Officers under Group ‘B’ & ‘C’

a) Actual hire charge of two trucks subject to maximum of To 14,000.00;

b) Packing/loading/unloading charges not exceeding To 2,500.00;

c) Hotel bills including meal charges etc. At actual but not exceeding Tk 3,500/- for Group –B and Tk.2, 500/- for Group –C for himself/herself and the family for maximum 5 (five) days;

Officers under Group ‘D’

a) Actual hire charge of one truck subject to maximum of To 7,000.00

b) Packing/loading/unloading charges not exceeding To 1,500/-

c) Hotel bills including meal charges etc. at actual but not exceeding. To 2,000/- for himself/herself and the family for maximum 5 (five) days

Employees under Group ‘E’

a) Lump sum amount of Tk 7,000/- in connection with transportation of his/ her personal belongings

b) Hotel bills including meal charges etc. At actual but not exceeding to 1,500/- for himself/herself and the family for maximum 5 (five) days

Employees under Group ‘F’

a) Lump sum amount of Tk 5,000/- in connection with transportation of his/ her personal belongings

b) Hotel bills including meal charges etc. at actual but not exceeding to 700/- for himself/herself and the family for maximum 5 (five) days

  • Transfer on Self Request

Normally transfer on self request is discouraged. But such cases may be considered on merit basis with prior permission from the competent authority. In such cases, the employee concerned will have to bear all expenses for self and family members including transportation expenses of his/her personal belongings.

  • Traveling Guide Line

01. The term ‘Day’ for the purpose of daily allowance shall mean a day of 24 hours or a part thereof (minimum 12 hours).

02. Hotel accommodation on Bank’s account can be availed for a maximum period of 5 days at a stretch. Prior permission from competent authority will be required for the period exceeding 5 days. Employees on deputation/temporary transfer will be entitled to avail hotel bills including meal charges etc. at actual not exceeding To 3,500/- for Group-B, To 2,500/- for Group-C, To 2,000/- for Group-D, To 1,500/- for Group-E and To 700/- for Group-F.

03. Family members include self, spouse, children and parents residing with and wholly dependent upon an employee.

04. If any travel is undertaken by bus, actual fare on submission of Ticket shall be allowed. If bus service is not available, the journey may be undertaken in other mode of transport and in that case mileage @ To 5.00 per kilometer shall be allowed.

05. An employee may be allowed a reasonable advance against Travelling Allowance to which he/she may be entitled while travelling either on duty or transfer.

06. T.A. bills shall be submitted to the Bank and claims will be allowed on satisfactory evidence of expenditure. Any excess amount of advance shall have to be refunded by the employee to the Bank in cash or by adjustment against pay within a period not exceeding (30) days from the date of travel.

  • Overseas Travel Entitlements

In case of travelling abroad, an employee will be entitled to under mentioned Travelling Allowances:

The following traveling allowance, hotel and meal charges etc. shall be admissible to the B