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

 AUTOMOBILE INDUSTRY IN INDIA

 HISTORY OF AUTOMOBILE INDUSTRY IN INDIA

 MARKET SHARE

 WORLD MOTOR VEHICLE PRODUCTION

 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.

 To access the final procedure of the settlement.

 To study about the documentation required for the final settlement.

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

 To evaluate employees’ satisfaction on the retirement benefits

provided by the company, settlement procedure and about
company’s HR policies.
 RETIREMENT BENEFITS
 Gratuity

 Privilege Leave Encashment

 Provident Fund

 Medical Benefits

 Telco Employee Pension Scheme (TEPS)

 Superannuation

 Bhavishya Kalyan Yojna (BKY)

 Life Cover Scheme

 GRATUITY
Calculation of Gratuity

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

 Service between 25 to 30 years - 18 days of salary for each

year in excess of 25 years

 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

 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

 Employee Provident Fund

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

 90% of Provident Fund accumulation can be withdrawn in the last year of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

 Non-EG grade employee (i.e. for TM and E

Grade) and his spouse, are covered under ‘Group
Medical Scheme’

 Tata Motors Limited has its own hospital Tata

Motors Hospital only in Jamshedpur
 TELCO EMPLOYEE PENSION
SCHEME (TEPS)
 Established by trust in 1997

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

 Types of Member’s Pension

 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

 Enforces compulsory savings

 Gives the tax-benefit

 Eligibility - All permanent employees

 Contributions
 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

 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

 Beneficiary
 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

 Eligibility - In case of death or during permanent or total

disablement of the employee

 Contribution – No contribution is required

 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
 HOUSING LOAN
 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
 VEHICLE LOAN

 Purchase of four and two wheelers to all the permanent employees

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

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

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

 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 VEHI

EG 1 & 2 Safari, I
Sumo
EG 3 & 4 Indigo, I
 AMENITIES LOAN

 Available to all M / TM grade employees

 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.

 SAMPLE DESIGN - We used the probability research design in the

survey.

 SAMPLING UNITS

 SAMPLE SIZE

 SOURES OF DATA COLLECTION - Primary data is collected directly

from the employees of TATA Motors Limited

 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

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

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

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

 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

 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