Incentive Policy

(04th January 2014)

Applicability
This Incentive policy supersedes and replaces all earlier policies circulated from time to time and
will come into force w.e.f. the week starting on 04 January 2014.

Objective
The objective of Incentive Policy is to increase overall productivity by motivating the
workers/supervisors to earn more by achieving targets & beyond and be partners in companys
growth. The base targets have been fixed for each product keeping in view international efficiency
bench marks as well as average productivity of the work force.

Fixation of Base Targets

Base targets for EGMCL will be as given below. Base targets will be linked with the efficiency level
and line months as categorized below:
Order category
Long runs
Medium runs
Small runs

Efficiency
level
Remarks
(%) to bulletin
targets at 100%
80%
Orders planned for 3 months or more, in a
particular line
75%
Orders planned for 1-3 months in a particular line
65%

Orders planned for up to one month in a particular

line

Effective date & Overview of policy:

The above base targets will be applicable for all new styles with immediate effect (04
January2014).

Unit wise revised base targets and Special incentive targets of the running and future planned
styles for sewing and finishing are attached as an annexure.

The Production team needs to convey the policy to the Staff & Workers and need to
implement the revised base targets.

The daily incentive rate is now 40/-tk (earlier 30/- tk) for achieving minimum production
base target.

The weekly incentive rate has increased to 120/-tk (earlier 60/ tk) for achieving minimum
production base target.

All the weekly incentive targets will be set at minimum 5% more efficiency than production
base targets.

Finishing targets will be set at minimum 80% efficiency of bulletin manpower.

Cutting targets will be higher by 100 pcs or 10% (whichever is lower) than the sewing
production targets.

Cutting targets will be revised every month.

Every department will concentrate more on better efficiency and better quality of the product.

Quality and Audit policy will come in to effect from 11 January 2014.

Separate Quality and Audit incentive policy, on different standard, has been introduced for
quality and audit department so quality manpower of sewing and finishing only will not be
considered while paying sewing line and finishing line incentives.

For cutting and Repair (Kill) dept quality employees will get paid as per their respective
departments achievements.

For daily incentive purpose - operator, helper and line mechanic will have the weightage of 1
unit, while IE & Supervisors will have weightage of 2 Unit and Line in-charge or FLM will
have weightage of 3 units.

For weekly incentive purpose - operator, helper, line mechanic and IE will have the
weightage of 1 unit, while supervisors and Line in-charge or FLM will have weightage of 1.5
times.

Department wise incentive detail and its calculation method has been described below:-

Daily Incentive - Cutting:

The cutting base target will be higher by 100 pcs or 10% (whichever is lower) per line than
the sewing base target for the particular style/order.

Every incremental increase of 50 pcs multiplied by no. of sewing lines will entitle the cutting
section for extra incentive of Tk 5/-.

Special Weekly Incentive - Cutting

Special Weekly cutting Incentive of Tk 120/- for the week will be applicable only if the
average cutting inputs for the week equal or exceed the target. For every increase of 5%, an
incremental 30/- Tk will be applicable.

For the purpose of Special Weekly Incentive, the week will be reckoned from Saturday to
Thursday. If a particular week has less than six working days, the incentive will be
calculated on pro-rata basis i.e. @ Tk 20/- per working day.

Daily Incentive - Sewing

At operator, helper and line mechanic level, incentive will be applicable as per following rates:
Level 1 Achieving base target
Level 2 Every increase of 50 Pcs

40/5/-

Units of measurement / weightage of incentive

Operators / QC / helpers & line mechanics will get the weightage of 1 (One) unit while IE &
Supervisors will have weightage of 2 (Two) units and Lines In-charge 3 (Three) units.

Other Conditions
if line misses the target on any day and hits the target on following day, it will not be eligible
for any incentive (i.e. if any line hits the target on 10th day, the line will get incentive for
10th day, then if the line misses the target on the 11th day and hits on 12th day, that particular
line will not get incentive for the 12th day).
Exception
"If line does not hit the target on any particular day, but next day gives the production by
recovering the loss of production of previous day then the concerned line will be eligible for
the full incentive of the day as per the production achieved.
So to achieve the incentive of the day, line will have to cover the production loss of previous
day.
Example
Base Target - 1,500 Pcs.
Target hit on 20th day - 1,400 Pcs. The Line will not get any incentive on that day.
Target hit on 21st day - 1,600 Pcs The Line will get Tk. 40/- for the 21st day.

Special Weekly Incentive - Sewing

If a line achieves efficiency of 5% more than the base target efficiency for the week, all
workers in the line will get Tk 120/- for the week as a Special Weekly Incentive for that
particular week. For every additional increase of 5% in efficiency, incremental 30/- Tk will
be applicable as Special Weekly Incentive.

For the purpose of Special Weekly Incentive, the week will start from Saturday to Thursday.
If a particular week has less than six working days, the incentive will be calculated on prorata basis i.e. @ Tk 20/- per working day.

Special Weekly Incentive target for various styles is attached.

The weightage of incentive to worker, IE and Mechanics will be one Unit, while the
Supervisors and Lines In-charge will be eligible for 150% or 1.5 Times of the workers
incentive.

Daily Incentive - Finishing:

The base target for Finishing will be at 80% efficiency of the finishing bulletin and the applicable
incentive will be Tk 40/- per day. For every incremental increase of 50 pcs, incentive amount will
increase by Tk 5/- (Same as sewing incentive).
However, the base target for long run styles will be at 85% efficiency of the finishing bulletin.

Special Weekly Incentive - Finishing

If a line achieves 5% more efficiency than the base target for the week, all workers in the line
will get Tk 120/- as Special Weekly Incentive for that particular week.

For every additional increase of 5% in efficiency, incremental 30/- Tk will be applicable as

Special Weekly Incentive.

For the purpose of Special Weekly Incentive, the week will be reckoned from Saturday to
Thursday. If a particular week has less than six working days, the incentive will be
calculated on pro-rata basis i.e. @ Tk 20/- per working day.

Special Weekly Incentive target of Finishing for various styles is attached.

The weightage of incentive to worker and Mechanic will be one Unit, while the
Supervisors and Lines In-charge will be eligible for 150% or 1.5 Times of the workers
incentive.

Packing:

No separate incentive is applicable as Packing Section is integrated with Finishing Department.

Rejection Repair
Tk 5/pc subject to minimum production of 150 pcs/day
CAD Section
CAD section not be eligible for any production incentive.
Killed Garments
Killed Garments section will not be eligible for any production incentive.
Cage/Quarantine:
Cage/Quarantine section will not be eligible for any production incentive.

Mending/spot removing/finishing alteration

No separate incentive will be applicable for the above sections as these activities will form part of
finishing section.

Quality control and Quality Audit:Quality control and Audit policy will be in effect from 11 January 2014.
The objective of this new incentive policy is to focus more on quality product at every level of
manufacturing stage. To meet the expectations of our esteemed customers and also to push our
companys standard to the next level we are required to upgrade our product quality further to better
level.
This new incentive policy will encourage our team to achieve better quality of our products and also
this will bring more financial benefit as appreciation to whole team.
Procedure:
The quality incentive has been prepared on the basis of following factors:1.
2.
3.
4.
5.

The respective line achieving the production base target.

Lot pass rate within the prescribed limit (Please refer to below charts).
Achieving the targeted DHU.
Achieving the targeted OQL.
Achieving the targeted final inspection pass rate.

Policy for quality control and audit department has been described below:A. Quality Control Department:-

1. Quality Control: - Daily Incentive

The quality team will be eligible to achieve the incentive on the basis of production target achieved
and line audit pass rate. Details refers to below chart:Level
Level : 1
Level : 2

Amount of
Incentive
line Audit Pass 70% lot QI :Tk. 40
Production base
QC Sup: Tk.
80
line Audit Pass 80% lot QI :Tk. 50
Production base
QC Sup: Tk.

Description of Condition

Remarks

1. Meeting
2. Meeting
target.
1. Meeting
2. Meeting

1 QC
Supervisor
looks after 2
lines. So QC
Supervisor will

target.

100

1. Meeting line Audit Pass 90% lot

Level : 3 2. Meeting Production base
target.
1. Meeting line Audit Pass 100%
lot
Level : 4
2. Meeting Production base
target.
Learning Curve (Build up Period 5 Days)
Level
1st Day
2nd Day
3rd Day
4th Day
5th Day

5th Day

5th Day

5th Day

Description of Condition
1. Meeting
2. Meeting
target.
1. Meeting
2. Meeting
target.
1. Meeting
2. Meeting
target.
1. Meeting
2. Meeting
target.
1. Meeting
2. Meeting
target.
If 5th day
1. Meeting
2. Meeting
target.
If 5th day
1. Meeting
2. Meeting
target.
If 5th day
1. Meeting
2. Meeting
target.

QI: Tk. 70
QC Sup: Tk.
140
QI: Tk. 90
QC Sup: Tk.
180
Amount of
Incentive

get 0.5 amount

of each line

Remarks

line Audit pass 30%

Production Build up
line Audit pass 40%
Production Build up
line Audit pass 50%
Production Build up

QI :Tk. 40
QC Sup: Tk.
80

line Audit pass 60%

Production Build up
line Audit pass 70%
Production Build up
line Audit pass 80%
Production Build up

QI :Tk. 50
QC Sup: Tk.
100

line Audit pass 90%

Production Build up

QI :Tk. 70
QC Sup: Tk.
140

line Audit pass 100%

Production Build up

QI :Tk. 90
QC Sup: Tk.
180

1 QC Supervisor
looks after 2
lines. So QC
Supervisor will
get 0.5 amount
of each line

2. Quality Control: - Special Weekly Incentive

While, quality control daily incentive is based on production line base targets
and audit pass rate, the Special weekly incentive is based on DHU target.

Parameters:

Achieving DHU target (Defects per hundred unit), And

Quality control Weekly incentive is not linked with production target.

Level

Description of Condition

Level : 1

Line Weekly Average line Audit

DHU at least 20

Level : 2

Line Weekly Average line Audit

DHU at least 15

Level : 3

Line Weekly Average line Audit

DHU at least 10

Line Weekly Average line Audit

DHU at least 5
Learning Curve (Build up Period 5 Days):Level : 4

Amount of
Incentive
QI :Tk. 90
QC Sup: Tk.
135
QI: Tk. 120
QC Sup: Tk.
150
QI: Tk. 150
QC Sup: Tk.
180
QI: Tk. 180
QC Sup: 210

Remarks

1 QC
Supervisor
looks after 2
lines. So QC
Supervisor will
get 0.5 amount
of each line

By achieving below mentioned DHU target Quality team can earn the
incentives:Amount of
Incentive

Level

Description of Condition

1st Day
2nd Day
3rd Day
4th Day
5th Day

End
End
End
End
End

5th Day

End Line Audit DHU at least 15

5th Day

End Line Audit DHU at least 10

5th Day

End Line Audit DHU at least 5

Line
Line
Line
Line
Line

Audit
Audit
Audit
Audit
Audit

DHU
DHU
DHU
DHU
DHU

B. Quality Audit Department:-

at
at
at
at
at

least
least
least
least
least

50
40
30
20
20

QI: Tk. 90
QC Sup: Tk.
135
QI: Tk. 100
QC Sup: Tk.
150
QI: Tk. 120
QC Sup :
Tk.180
QI: Tk. 140
QC Sup: Tk.
210

Remarks

1 QC
Supervisor
looks after 2
lines. So QC
Supervisor will
get 0.5 amount
of each line

As per this policy quality audit department has been divided in to 3 further categories for
incentive purpose, which are:

Carton Auditors
Finishing end line auditors
Sewing end line auditors

In quality, As per this policy team work will bring more financial benefits to the employees.
We have introduced new weekly and Monthly incentive for Audit department by linking above 3
categories with each other to ensure the better quality of product.
1. Carton Auditors:Carton auditors will be eligible for weekly and monthly incentives. Further segregation of daily and
monthly incentive has been done below: Weekly Incentive for Carton Auditor:
Carton auditors will be eligible for weekly incentive if final inspection from customer side will
achieve the parameters given in the chart:-

Carton
Auditor

Level

Description of Condition

Amount of
Incentive

Level : 1

Final Audit Pass Rate 100%

Weekly Tk. 250

Level : 2

Final Audit Pass Rate 97%

Weekly Tk. 200

If final inspection (Customer side) audit pass rate is below 97% than carton auditors will not be
eligible for weekly incentive.
Monthly Special Incentive for Carton Auditor:
We have set the parameters of monthly incentive for carton auditors on the basis of OQL, to achieve
customers premium expectation.
Carton auditors will be eligible for monthly incentive only if final inspection achieves below
mentioned OQL (Overall quality level).
Carton
Auditor

Level

Description of Condition

Amount of
Incentive

Level : 1
Level : 2

Final Audit OQL Achieve 2

Final Audit OQL Achieve 2.5

Monthly Tk. 1000

Monthly Tk. 500

Level : 3

Final Audit OQL Achieve 2.8

Monthly Tk. 400

Level : 4

Final Audit OQL Achieve 3

Monthly Tk. 300

If average OQL for the month is below than 3, then carton auditors will not be eligible for monthly
incentive.
2. Finishing End line Auditors:Finishing line auditors will be eligible for daily and weekly incentives, which are described below: Finishing End Line Auditor - Daily Incentive:
Finishing end line auditors will be eligible for the daily incentive on the basis of carton audit pass
rate.
To achieve minimum incentive of 40/- tk, the minimum carton audit pass rate is 70%. If finishing
auditors achieves better passing percentage than there incentive will also increase accordingly.
Failing achieve minimum level, will achieve no daily Incentive for finishing line auditors.
Refer below given chart for further details:-

Finishing
End Line
Auditor

Level

Description of Condition

Amount of
Incentive

Level : 1

Carton Audit Pass Rate 100%

Daily Tk. 100

Level : 2

Carton Audit Pass Rate 95%

Daily Tk. 80

Level : 3

Carton Audit Pass Rate 90%

Daily Tk. 70

Level : 4

Carton Audit Pass Rate 85%

Daily Tk. 55

Level : 5

Carton Audit Pass Rate 80%

Daily Tk. 50

Level : 6

Carton Audit Pass Rate 75%

Daily Tk. 45

Level : 7

Carton Audit Pass Rate 70%

Daily Tk. 40

Finishing End Line Auditor - Weekly Special Incentive:

Weekly incentive for finishing end line auditors depends on the basis of Carton audit DHU.
To claim weekly incentive, finishing line auditors will have to achieve below given parameters:Finishing
End Line
Auditor

Level

Description of Condition

Amount of
Incentive

Level : 1

Carton Audit DHU 5

Weekly Tk. 180

Level : 2

Carton Audit DHU 10

Weekly Tk. 150

Level : 3

Carton Audit DHU 15

Weekly Tk. 120

3. Sewing End Line Auditors:Sewing end line auditors will be eligible for the incentive based on following parameters:a. For weekly incentive - Finishing line DHU, And
b. For daily incentive - Finishing lot passed at prescribed rate.
Weekly Incentive for Sewing End Line Auditor:
Sewing line auditors will be eligible for weekly incentive only if they can achieve finishing line
DHU as per the below given standard:-

Sewing
End Line
Auditor

Level

Description of Condition

Level : 1

Finishing Line DHU 5

Amount of
Incentive
Weekly Tk. 180

Level : 2

Finishing Line DHU 10

Weekly Tk. 150

Level : 3

Finishing Line DHU 15

Weekly Tk. 120

Sewing End Line Auditor - Daily Incentive:The sewing line auditors daily incentive is based on the number of finishing lot passed by the
finishing auditors. The calculation of same has been described below:-

Sewing
End Line
Auditor

Level

Description of Condition

Level : 1

Finishing Lot pass 100%

Amount of
Incentive
Daily Tk. 90

Level : 2

Finishing Lot pass at least 95%

Daily Tk. 80

Level : 3

Finishing Lot pass at least 90%

Daily Tk. 70

Level : 4

Finishing Lot pass at least 85%

Daily Tk. 55

Level : 5

Finishing Lot pass at least 80%

Daily Tk. 50

Level : 6

Finishing Lot Pass Rate 75%

Daily Tk. 45

Level : 7

Finishing Lot Pass Rate 70%

Daily Tk. 40

If finishing lot passing rate is any below than 70% than sewing line auditors will not be eligible for
daily incentive.

Riders:

1) Use of UBT/Wiper
If in any line, any operator does not use the UBT
then that particular operator will not get the incentive for the day.

or

wiper

is

found

bent,

The I.E of the line will check status of UBT everyday and update the check list.

2) Line Mechanics to be eligible for Incentive only on fulfillment of certain

conditions
Line Mechanics will be eligible for production incentive subject to fulfillment of the following
conditions:
a) Proper functioning of UBT's and safety equipment's like eye guard and needle guard.
b) Zero oil leakages from machines
c) Completion of " B" check ( Preventive maintenance) for weekly allocated number of
machines based on three months roster.

3) Line Managers/Supervisors not to get the incentive if the total manpower

deployed in the line exceeds the no. as per Bulletins
Line Managers/Supervisors will not be eligible for production incentive if the actual manpower in
their lines exceeds the no. as per approved bulletins.

4) Total Special Weekly Incentive payment for a particular line will be linked to
the approved manpower as per bulletins
There will be a cap on the total special weekly incentive for the individual lines and it will be linked
to the approved manpower no. as per bulletins.
For example, if approved manpower for a particular style is 80 and if the line is eligible for the
Weekly Incentive, the total incentive for the week for that line will be 80 X 60 i.e. Tk 4,800/- plus
the amount for Supervisors/Line Managers & Line Mechanic as per the policy. If the actual
manpower used for the week was 84, the incentive amount of Tk 4,800/- will be distributed among
84 no.
Note:
1) HR & Accounts Department will go strictly as per the policy and will not entertain any
exception unless it has the approval of the Chairman/CEO.
2) For operations not covered in the above policy e.g. Wrinkle-free process (CIPL), the
incentive scheme will be separately approved by the Chairman.

3) Break-up of lines and accordingly, fixing up incentive targets

With a view to have better control and accountability, it is proposed to break sewing lines
into front parts, back parts and assembly line. Targets for the front and the back parts will in
that case be higher than the assembly targets.
As this requires some ground work, it has been included in the policy as a proposal and will
be tried out in 1-2 lines to begin with and if successful, will be implemented in other lines as
well.
Other Notes:DHU:-

Defects per hundred unit, is done by the internal checkers/Auditors. For every 100
pcs of checking how many defected pcs found gives the DHU data. Internal auditors
prepare this data every hour. This will help to calculate the incentive of sewing line
and finishing line controllers and auditors.

OQL:-

Overall quality level, this check is done by customer or their nominated inspection
party, who comes to the factory and provide OQL on the basis of AQL standard
(Actual quality level). OQL data will help to calculate the incentive for carton/Final
auditors.