BUSINESS MATH’S &

STATISTICS REPORT
2019
PRESENTED TO: SIR ABDUL WAHAB

Prepared by:
COMPANY: NOVARTIS
Hamza Nasir Qureshi
Meer Ahsan Waseem TOPIC: SALARY FUNCTION
Ahsan Rasheed Ahmed
Umer Saleem
 TABLE OF CONTENT
1. INTRODUCTION OF COMPANY
2. MISSION & VISION OF COMPANY

3. HISTORY OF COMPANY
4. STRATEGIES OF COMPANY
5. COMPETITORS OF COMPANY

6. PRODUCTS OF COMPANY
7. INNOVATIVE BUSINESS DIVISION
8. INTRODUCTION OF SALARY FUNCTION
 BASIC SALARY

 WAGES AND PANEL RATES

 COMMISSION

 ALLOWANCES

 SALARY DEDUCTIONS
Curing and Caring
 INTRODUCTION

• Novartis word comes from the Latin term “Novae Artes”, which means “new arts” or “new skills”.
• Novartis was created in 1996 through the merger of Ciba-Geigy and Sandoz.
• Novartis is a Swiss multinational pharmaceutical company based in Basel, Switzerland.
• Novartis is one of the largest pharmaceutical companies by both market capitalization and sales.
• Novartis has net worth of 51.9 billion US Dollars among the world-wide industry in 2018.
 MISSION & VISION
Mission: “Cure & Care”
• Novartis mission is to discover new ways to improve and extend people's lives.

Vision:
• Novartis vision is to be a trusted leader in changing the practice of medicine.
 NOVARTIS STRATEGY:
• Science-based innovation
We believe in innovation that produces breakthrough medicines and products will be more important than
ever in the healthcare industry in the coming years.

• Better patient outcomes.

We seek to develop medicines and products that can produce positive real-world outcomes for patients
and healthcare providers.

• Lead in growing areas of healthcare

We aim to develop innovative products in growing areas of healthcare where we can make a real
difference.
 COMPETITORS IN PHARMACEUTICAL
BUSINESS

 Abbot Laboratories.
 Roche Pharmaceutical.
 GSK Pharmaceutical.
 Abbott Pharmaceutical.
 Pfizer Pharmaceutical.
 KEY DRIVERS OF NOVARTIS:

 Gilenya : is an immunosuppressant
 Cosentyx : is used to treat plaque psoriasis, ankylosing spondylitis, and psoriatic arthritis
in adults.
 Lucentis : is commonly used for Diabetic Macular Edema, Diabetic Retinopathy
 Tasigna : It is used to treat leukemia
 Entresto : for patients with Heart Failure with reduced ejection fraction.
 INNOVATIVE BUSINESS DIVION:

ALCON:
 Alcon is a subsidiary of Novartis and the largest manufacturers of contact lenses and lens
care products specialize in surgical equipment, contact care products and Vision Care.

SANDOZ:
 Sandoz is also a subsidiary of Novartis which was founded in 1886and start producing
fever-reducing drugs. First it introduced in international market between World War I.
Specialize in Generic Drugs for nearly every kind of diseases.
 SALARY FUNCTION
Introduction:

 Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed.
 Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
 It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
 COMPONENT OF SALARIES:
Basic Salary:
Salary is normally a fixed amount per year. The salaried hours to be worked should be in the employment agreement basic salary
is the amount paid to an employee before any extras are added or taken of

Wages and Panel Rates:

Wages is payment based on the time worked, and is usually payment per hour.

Commission:
A commission is when an employee is paid based on sales they have made or other targets they have met, for example, a
percentage of the total value of a sale made.
 SALARY ALLOWANCE:
Allowance: a sum of money paid regularly to a person to meet needs or expenses
Types of Allowances:
House Rent Allowance:

• This allowance is used by the employee to meet the rental expenses for his/ her accommodation

Conveyance Allowance:

• It’s a type of allowance offered to employees of a company to compensate for their travel from residence to and
from respective workplace location
 ALLOWANCES
Travelling Allowance:

• Any allowance granted to meet the cost of travel on tour or on transfer by the employer to his
employee
• It is exempted up to actual expenditure incurred for the purpose of employment. Excess, if any,
will be taxable

Children education allowance:

• Paid for the education of employee’s children

 ALLOWANCE
Overtime Allowance:
• Overtime is considered any pre-authorized work performed during a given work period
that exceeds your contractually agreed working hours with the UT

Medical Allowance:

• Medical allowance is a fixed allowance paid to the employees of a company on a monthly

basis irrespective of whether they submit the bills to substantiate the expenditure or not.
 SALARY DEDUCTIONS:
TYPES OF DEDUCTIONS:
Provident Fund:
 An amount of money consisting of regular payments by an employee and an employer
over a period of time that the employee receives when they leave a company or retire ,
the contribution % of employee and employer are different in every organization.
 SALARY DEDUCTIONS:
Income Tax:
• An income tax is a tax that governments impose on financial income generated by all entities within
their jurisdiction.
 SALARY DEDUCTIONS:
EOBI deduction:
• A contribution equal to 5% of minimum wages has to be paid by the Employers of all the
Industrial and Commercial Organizations where EOBI act is applicable
 “APPLICATION OF SALARY FUNCTION IN
NOVARTIS”:
Novartis International AG is a Swiss multinational pharmaceutical company based in Basel, Switzerland.
Salary function is applied in Novartis Pharmaceutical accordingly to level vise, from level 1 to level 4 are the levels
designated to top management of company Level 5 & level 6 are designated to junior level position in Novartis.
Novartis has wide range of salaries according to each level:

• Level 1 CEO or Country Head

• Level 2 Business Franchise Head or Commercial Excellence Head
• Level 3 Group Brand Manager or Second line Manager.
• Level 4 Brand Manager or Sr Zonal Sales Manager.
• Level 5 & 6 Entry Level Position or Sales Associate.
 SALARY FUNCTION IN NOVARTIS
Basic Salary:
• Basic Salary is normally a fixed amount per month or year.
• The salaried hours to be worked should be in the employment agreement basic salary is the amount paid to an
employee before any extras are added or taken off.
• Basic salary depends upon the level of the employee and salary range (L6 to L1) is from 30,000 to 2Mio per
month.
 HOUSE RENT ALLOWANCE:
This allowance is used by the employee to meet the rental expenses for his/ her accommodation per month
when any employee allocated to place or city other than their based town.

Designated Level New House Rent

Subsidy
Management Level 1 50,000
Management Level 2 40,000
Management Level 3 30,000
Management Level 4 25,000
Management Level 5 25,000
Management Level 6 15,000
 ALLOWANCES
Utilities:
• Utilities are the equal of 10% of basic salary per month added additionally to basic salary
according to the level of employment.

Sales Incentive:
• Unit Based Incentive: Sales associate get paid quarterly incentive according to unit vise sales.
• Target Based Incentive: Associates get paid quarterly incentive on achieving given targets.
 FIELD FORCE ALLOWANCE:
Our Field Force plays a critical role in delivering our Purpose. We are pleased to announce the following Field Allowances:
Type Allowance
Overnight Stay 1100
Ex-Station 400
Daily Allowance (Other Cities) 320
Daily Allowance (Big Cities) 355
Mileage 3.5/km
Working in Suburb – Lunch 180
FO/FE (6FF)
Type Allowance
Overnight Stay 1250
Ex-Station 425
Car Mileage 12.5 Km/Liter
Working in Suburb - Lunch 180
ZSM/Sr. ZSM (4FF & 5FF)
Type Allowance
Overnight Stay 3000
Ex-Station 550
Car Mileage 10 Km/Liter
Working in Suburb - Lunch 180
Bonus:
• This is yearly based bonus applicable on basis of yearly performance of each associate
and according to level range from 36000 to 90000.

Cell Phone Allowance:

• Minimum 600Rs are paid monthly to the junior level post and increases according to the
position level.