Page 11 - 2018 MSC HR Policy

Salary / Wage Increment

Annual Increment

The Company will appropriately adjust the salary/wage for employee on a yearly basis. The schedule will
be during February and March of each year, while the new salary will be in effect from March 1. For
permanent employees, both local and expatriates, the result of performance appraisal (KPI and Behavior)
and the disciplinary record will determine annual salary adjustment. An eligible employee will need to pass
a probation period, and successfully complete at least 1 year of service with the Company, rolling from the
first day of his/her service towards March 1 of the following year.

The year-on-year Annual Increment policy will be issued at the beginning of the year.

Promotional Increment

The Company will appropriately adjust salary/wage for employee who is promoted to a higher position
(higher job level and responsibilities), to be effective from the first day of promotion.

The promotion considers on the individual fit to a higher position in all aspects of performance
management, given the accumulated or exceptional performance demonstrated and recorded in the
Performance Appraisal form/system. The assessment will also be based on the job specific skills and
competency acquired for the promoting position.

Employee Recognition and Rewarding

In the occasion of the Company annual events or employee recognition, such as the Minor Awards night
or similar, the Company may reward an employee in cash or equivalent as appropriate.

The employee cash award must be appropriately recorded for accurate tax filling purposes.

HUMAN RESOURCES POLICY Page 11 of 49
VERSION: HR001-2018, JANUARY 1, 2018