Manager: Policies, Systems & Administration MDIF Presentation HR Policies, Systems and Administration Mr John Martin Hogg Manager: Policies, Systems & Administration May 2012

Topics for Discussion Payslip & Package Structure Working Hours Vacation Leave Self Service Remuneration & Benefits General Questions Tax Changes 2012 References & Contacts

Ordinary Working Hours The ordinary hours of work for all full time staff are a maximum of forty (40) hours per week, excluding meal intervals (8 hours per working day) Official Working Hours The official office hours approved by the NRF Board are from 08:00 to 16:30 and lunchtime is from 13:00 to 13:30

Vacation Leave Employees on a 5 (five)-day workweek will be entitled to 25 working days vacation leave per year. Vacation Leave accrues at a rate of 2.083 days per month in arrears. Annual leave cycle is the period of 1 January to 31 December of a particular year, for the calculation of vacation leave. For administration purposes vacation leave is split into two components – Statutory Leave (15 days) & Discretionary Leave (10 days) All employees must take the statutory leave within eighteen (18) months of the starting date of each annual leave cycle, in other words, statutory leave must be taken before 30 June of the following year. Discretionary leave may be accumulated to a maximum of fifty (50) working days. The rate of accumulation may not exceed 10 days in any one year.

Remuneration & Benefit Arrangements Pay Day Salaries are normally paid on the 25th day of every month and by the 15th with the exception of the month of December. Where the 25th /15th day falls on a weekend or Public Holiday, salaries will be paid out on the first working day preceding that day. Salaries are normally electronically transferred to an employee’s bank account. Salary Review The NRF will review remuneration packages annually through a negotiated process with all concerned parties. Any increases will be implemented with effect from 1st April each year. Performance Notch Increase Salary notch increases are merit increases intended to facilitate movement of salaries within a specified salary band. These increases are performance based and are given to deserving individuals for meeting and exceeding expectations (IPMS 3 and 4). Salary notch movements are implemented with effect from 1st October every year. Performance Bonus The Performance Bonus is paid as % of the monthly entry level salary for the individual’s grade. The bonus is performance based and is given to deserving individuals for exceeding expectations (IPMS 4). Performance Bonuses are paid in July each year when justified deserved and affordable.

NRF Salary Scales

What determines my Salary? Skills & Qualifications: these are specific skills and qualifications required for a specific job. Performance: performance reviews are done twice a year Inflation: the inflation rate of South Africa plays a role in the annual increases granted as well as the remuneration structure of the organisation. Market Demand: the demand in the market for people with specific skills and qualifications. The higher the demand, the higher the salaries that are normally paid to attract and retain the specific talent. Length of service in grade: A person who has been in a specific grade for some time and performing consistently, is normally expected to be higher on the remuneration band for the specific grade.

Total Remuneration Package The NRF uses a Total Remuneration Package approach in its pay structure. Total Remuneration Package refers to remuneration in which cash/basic pay and all benefits, both compulsory and voluntary are converted to their cash value equivalent. The employee may structure the total package within prevailing tax and other legal provisions. The Total Package consists of: Basic Pensionable salary, which is the basic rate of salary in Rand per month; Optional Thirteenth cheque, which is equal to 8,33% of the employee’s annual pensionable salary; Non pensionable allowance Other allowances, such as entertainment, car and housing, some of which are granted to employees to meet the cost of business related expenses. The NRF makes the following payments out of the employee’s remuneration package on his/her behalf: Pension fund contributions Group Life contributions (the rules of the fund will determine participation) Medical Aid contributions The sum of the above options chosen by the employee shall constitute the Total Remuneration Package of the specific employee.

Tax Changes 2012 The employer contribution to the medical aid is fully taxable as of 01 March 2012. Medical tax credits replace the medical aid cap amounts. Employees who are younger than 65 qualify for a monthly medical tax credit (MTC) as follows: The MTC will be deducted from the tax calculated for the employee for each month the employee contributes to a medical scheme, reducing the employee’s tax paid each month by the MTC amount. The MTC is calculated in relation to the number of beneficiaries on the medical aid: R230 for the main member, R230 for the first dependant, and R154 for each additional dependant.   Group Life Cover and Group Life Cover for Spouse are now fully taxable as per the new legislation.

Payslip in the NRF Package Structure

UIF 1% to max R124.78 (Equal ER & EE Contributions) The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers. Workers who become unemployed have the right to claim from the UIF. COIDA 0.4% (ER Contribution) The Compensation for Occupational Injuries and Diseases Act applies to all employers and casual and full-time workers who as a result of a workplace accident or work-related disease are injured, disabled, killed or become ill. In order to Balance your Payslip to your total package, you can calculate the sum of the following: Pensionable Salary x 12 or 13 (Depending on 13th Cheque) Non-Pensionable Salary x 12 Pension ER x 12 or 13 (Depending on 13th Cheque) Group Life x 12 or 13 (Depending on 13th Cheque) Medical Aid x 12

HR Self-Service The objective of the HR Self Service is to: Simplify and streamline HR practices Reduce time spent on routine tasks Reduce costs Improve the accuracy of records Reduce audit findings Tracking HR related costs and other aspects of the business Information sharing for improved decision making More effective HR Department

Benefits for Staff The HR Self-Service module allows employees to access individual HR related data and perform limited HR transactions over the system. Access to up to date HR information and timelines Online Payslips (My Payslip) Online Leave management (My Leave) Change of personal information online (My Details) COMING SOON Online Training (My Training) Performance Management (PDR)

General Questions Would a NRF employee be considered for appointment in another NRF programme if the position he/she is applying for is on the same level or on a lower level as they currently hold? If a NRF employee is appointed in another NRF programme on the same level does the employee remain on the same salary level or can he/she be appointed at a lower salary as he/she currently earns? Why does the leave entitlement differ between the Payslip and HR Online? Can your payslips be reconciled to your IRP5?

THANK YOU! References & Contacts Conditions of Service on the HR Online: HR Info For any queries contact your HR Department RISA Building Office 230 2nd Floor Tebogo Letseka – Ext. 4225 Tumi Leeuw – Ext. 4344 John Martin Hogg – Ext. 4012 THANK YOU!