PROJECT ON TATA MOTORS

A PROJECT REPORT ON SUMMER INTERNSHIP IN TATA MOTORS LTD. JAMSHEDPUR, JHARKHAND

A PROJECT ON RETIREMENT BENEFITS AND SETTLEMENT PROCEDURES AND HR POLICIES PRESENTED BY: LAWI ANUPAM Roll No.-1224108221 MBA (IB) 2008-10 GITAM INSTITUTE OF INTERNATIONAL BUSINESS VISAKHAPATNAM

INDUSTRY PROFILE 

ABOUT AUTOMOBILE INDUSTRY

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AUTOMOBILE INDUSTRY IN INDIA

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HISTORY OF AUTOMOBILE INDUSTRY IN INDIA

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MARKET SHARE

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WORLD MOTOR VEHICLE PRODUCTION

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AUTOMOBILE PRODUCTION IN INDIA

COMPANY PROFILE 

ABOUT TATA MOTORS

Founder

J

Year of Establishment

1

Industry

A

Business Group

T

Listings & its codes

B

OBJECTIVES OF THE STUDY 

To study about the retirement benefits of the retired or separated employees.

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To access the final procedure of the settlement.

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To study about the documentation required for the final settlement.

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To present an overview of the various HR rules and policies.

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To evaluate employees’ satisfaction on the retirement benefits provided by the company, settlement procedure and about company’s HR policies.

RETIREMENT BENEFITS 

Gratuity

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Privilege Leave Encashment

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Provident Fund

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Medical Benefits

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Telco Employee Pension Scheme (TEPS)

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Superannuation

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Bhavishya Kalyan Yojna (BKY)

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Life Cover Scheme

GRATUITY Calculation of Gratuity 

Service up to 25 years - 15 days salary for each year of service

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Service between 25 to 30 years - 18 days of salary for each year in excess of 25 years

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Service above 30 years - 1 month salary for each year in excess of 30 years

PRIVILEGE LEAVE ENCASHMENT 

Calculated on last (Basic + DA) of the employees and the number of privilege leave balance

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Leave for E grade is maximum for 240 days and others 300 days.

Calculation (Basic + DA) * Privilege Leave Balance / 30

PROVIDENT FUND 

Company Provident Fund

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Employee Provident Fund

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Contribution paid - 12% of the (Basic + DA)

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90% of Provident Fund accumulation can be withdrawn in the last year of service

MEDICAL BENEFITS 

EG grade employees and their spouse are covered under ‘Tata Motors Health Scheme’

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Non-EG grade employee (i.e. for TM and E Grade) and his spouse, are covered under ‘Group Medical Scheme’

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Tata Motors Limited has its own hospital Tata Motors Hospital only in Jamshedpur

TELCO EMPLOYEE PENSION SCHEME (TEPS) 

Established by trust in 1997

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Contribution is made from the Company’s Provident Fund contribution which is 8.33% subject to the maximum of Rs.541

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Types of Member’s Pension   

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Superannuation Pension Retirement Pension Short service pension

Beneficiaries    

Employee Widow and children on the death of the member Disabled member or child till death The nominee

TELCO SUPERANNUATION SCHEME 

Non-contributory social security scheme

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Enforces compulsory savings

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Gives the tax-benefit

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Eligibility - All permanent employees

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Contributions   

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Ordinary Annual Contribution Extraordinary Lump Sum Contribution for Past Service Final Contribution

Benefits 



1/3rd of total accumulated amount can be commuted which is non-taxable 2/3rd amount is used to buy annuities from LIC for pension payment

BHAVISHYA KALYAN YOJNA (BKY) 

Eligibility – In case of death or during permanent or total disablement of the employee while still in service irrespective of his grade

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Benefit – 50% of the last drawn basic salary (Basic + DA) or Rs.4000 whichever is more in the form of monthly payment till the date of normal retirement

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Beneficiary    

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Ex-employee, in cases of permanent and total disablement. Spouse, In case of death If the spouse is no more, then the beneficiary is the ward. In case of death of the first beneficiary, the person next specified as a beneficiary

Stoppage of Kalyan Payment –   

If any ward of the ex-employee is employed in any unit of the company. If the beneficiary ward reaches the age of 21 years or expires whichever is earlier. If the beneficiary expires but the payment will continue to the person next specified as a beneficiary.

LIFE COVER SCHEME 

Introduced from 1st November 1973

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Eligibility - In case of death or during permanent or total disablement of the employee

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Contribution – No contribution is required

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Benefits - nominee shall be paid a sum which is equal to the of 20 months last drawn salary * (Basic + DA) subject to a minimum of Rs.1.50 lakhs as on date by the company.

SETTLEMENT PROCEDURE SCREEN SHOTS OF SETTLEMENT PROCEDURE IN HR DATA MASTER

Pay roll view:

Display of Payroll in Zrpy00150:

Contd.

Generating cheque through system F110:

Contd.

Contd.

Bank Advice:

Cheque spool in sp01:

Mail to IBM for printing:

HR RULES AND POLICIES 

CITY DEARNESS ALLOWANCES

GRADE CITY

Mumbai

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HOUSING LOAN 

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An interest of 2% per annum (pre-tax) paid by the employee

Company approved financiers are:    

HDFC ICICI SBI IDBI Bank

GRADE GROUPS EG 1A + & President EG 1A

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VEHICLE LOAN 

Purchase of four and two wheelers to all the permanent employees

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Loan for two wheeler is applicable for non-EG grades only

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The maximum loan for two-wheeler vehicle is Rs.40, 000

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The offer of car loans is only for the permanent M / TM grade employees and EG grade employees of TML

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An interest of 2% per annum (pre-tax) paid by the employee

The individual loan limits based on the grade is shown below

GRADE GROUPS EG 1 & 2

VEHI

Safari, I Sumo

EG 3 & 4

Indigo, I

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AMENITIES LOAN 

Available to all M / TM grade employees

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Eligible for the loan at an interest of 2% per annum

GRADE GROU M / TM

SURVEY METHODOLOGY 

RESEARCH APPROACH - Our research is based on Qualitative and Quantitative research.

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SAMPLE DESIGN - We used the probability research design in the survey.

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SAMPLING UNITS

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SAMPLE SIZE

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SOURES OF DATA COLLECTION - Primary data is collected directly from the employees of TATA Motors Limited

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SAMPLING METHODS - We have performed the random sampling for our survey.

FINDINGS AND ANALYSIS OF DATA Q.No. 1  Are you aware of the different retirement benefits provided by the company to the employees?

Unaware 18%

Q.No. 2 

Are you aware of the special superannuation scheme provided by the company?

Unaware 23%

Q.No. 3 

Are you aware of the medical facilities that you can avail after your retirement?

No 11%

Q.No. 4 

Are you aware of your taxable retirement amount?

No 42%

Q.No. 5 

Which do you believe would be more advantageous?

Lump sum payment 36%

Q.No. 6 

What is the time taken for the settlement after the notice of retirement given and after completing all documentations?

After 1 month 20%

Q.No. 7 

Are you happy with the online settlement procedure and the time taken by the company to complete the process?

No 23%

Q.No. 8 

If yes, how would you rate it?

Poor 11%

Q.No. 9 

Are you happy with the different HR policies of the company?

No 27%

Q.No. 10 

Do you believe that your personal information is kept confidential?

No 8%

CONCLUSION 

A large number of employees of the organization are satisfied with the retirement benefits provided by the company after their separation

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Most of the employees are aware of the special superannuation schemes, medical facilities, taxable retirement amount, and other benefits provided by the company

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They are happy with the settlement procedure, the time taken for the settlement and about company’s HR policies

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HR rules and policies of the organization which are constantly reviewed and revised for the benefit of the employees and the organization.

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The entire settlement procedure is a very sensitive area and the settlement cell has to be highly cautious while entering the details of the retired employees

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The settlement cell has to take extra precautions while setting the dues of the employees to ensure flawless and timely payment of settlement dues.

THANK YOU