Remuneration Employee Turnover Level

10 Consolidated Financial Statements 09 Cross Reference of Annual Report Award 2016 Criteria 08 Corporate Social Responsibility 07 Integrated Corporate Governance 06 Corporate Governance found in Chapter The Overview of Support Functions, sub- chapter of the Human Capital Management on page 236-245.

4. Career Development

Related to the career development, Bank Mandiri always guarantees that all employees have an equal career opportunity either male or female by building career path system in which the requirements of each job and the competency of each employee is integrated into the performance appraisal system. Bank Mandiri views that good practice of career development is an important thing that can improve productivity and work attitude create job satisfaction in order to achieve company goals.

5. Industrial Relations

Bank Mandiri consistently strives to create a harmonious working relationship with all of its employees. Therefore, Bank Mandiri guarantees freedom to all employees to join union of employee organization as a protection step which is provided by the Company to improve the employees welfare. Further explanation related to industrial relations can be found in Chapter The Overview of Support Functions, sub-chapter of the Human Capital Management on page 236-245.

6. Remuneration

Bank Mandiri already comply with all regulation and laws applied related to remuneration, where the remuneration of all employees have been adjusted above the standard minimum wage applicable in the operational area of Bank Mandiri. Related to remuneration, Bank Mandiri strives to maintain the gap ratio of salaries of all employees so that the difference will not be too high. The following table shows the ratio of the highest and lowest salaries of Bank Mandiri during 2016: Descriptions Ratio The highest and lowest employee salaries 57:1 The highest and lowest salaries of the Board of Directors 1.1:1 The highest and lowest salaries of the Board of Commissioners 1.1:1 The highest salaries of the Board of Directors and the highest employee salaries 1.3:1

7. Employee Turnover Level

Bank Mandiri considered that a conducive working atmosphere can reduced the employees turnover. In 2016, Bank Mandiri recorded the number of employees amounted to 38,940, an increase of 5.66 compared to the previous year, amounting 36,737 employees. In the meantime, in 2016, Bank Mandiri has done termination of employment retirement age, resigned, dismissed, health reasons to 1,249 employees. The implementation of the termination PHK carried out by Bank Mandiri with reference to the applicable provisions laws and guided by Collective Labour Agreement CLA that governing the termination process of employment, the implementation guidelines for termination of employment and the rights and obligations of employees when the employment relationship ends. Health Practice Policies Bank Mandiri understands that the health of all employees is one of the main factors that must be considered due to its importance in supporting the performance of employees as individuals, therefore the performance companies as a whole. Due to this, Bank Mandiri fully supports the quality of all employees health by providing general medical check-up and health insurance facilities to all employees, both to permanent and temporary employess with the expectation that all employees will maintain good health. In addition, Bank Mandiri also provides health facilities to the employees’ family by providing health facilities for children with the age limit of 21 years, for those who have not worked and not married yet. Especially for children who are still attending school, unemployed and not married yet the limit is up to 25 years old. In terms of health assistance to all employees, Bank Mandiri refers to the CLA PT Bank Mandiri Persero Tbk Period 2015-2017 Regarding Health Care Facilities. The Implementation of 2016 Activities Throughout 2016, Bank Mandiri has organized several activities related to the health field, such as blood donation activity which held at the Auditorium of Plaza Mandiri, 3 rd floor, and was followed by a total of 700 participants in every activities. This blood donation activity regularly held four times a year and in 2016 has been held on the following date: 1. 1 - 2 March 2016. 2. 30 - 31 May 2016 3. 30 - 31 August 2016 4. 29 - 30 November 2016 Safety Practice Policies Besides health, work safety also becomes an important aspect for the management. Bank Mandiri always tries to minimize the working accident risks in order to create a safe and comfortable working environment in optimizing Company’s productivity. As the commitment to maintain safety for all employees, Bank Mandiri also has managed the working accident risk in 03 Company at a Glance 04 Management Discussion and Analysis on Companys Performance 05 Review of Business Support Function 01 Main Highlights 02 Management Report accordance with the needs of the employees in the office and in the field when on duty, among others:

1. In the Office