A PROJECT REPORT ONA PROJECT REPORT ONSUMMER INTERNSHIP SUMMER INTERNSHIP

IN IN TATA MOTORS LTD.TATA MOTORS LTD.

JAMSHEDPUR, JHARKHANDJAMSHEDPUR, JHARKHAND

A PROJECT ON RETIREMENT A PROJECT ON RETIREMENT BENEFITS AND SETTLEMENT BENEFITS AND SETTLEMENT

PROCEDURES AND PROCEDURES AND

HR POLICIESHR POLICIES PRESENTED BY:

LAWI ANUPAMRoll No.-1224108221

MBA (IB) 2008-10GITAM INSTITUTE OF INTERNATIONAL BUSINESS

VISAKHAPATNAM

INDUSTRY PROFILEINDUSTRY PROFILE ABOUT AUTOMOBILE INDUSTRYABOUT AUTOMOBILE INDUSTRY

AUTOMOBILE INDUSTRY IN INDIAAUTOMOBILE INDUSTRY IN INDIA

HISTORY OF AUTOMOBILE INDUSTRY IN INDIAHISTORY OF AUTOMOBILE INDUSTRY IN INDIA

MARKET SHAREMARKET SHARE

WORLD MOTOR VEHICLE PRODUCTIONWORLD MOTOR VEHICLE PRODUCTION

AUTOMOBILE PRODUCTION IN INDIAAUTOMOBILE PRODUCTION IN INDIA

COMPANY PROFILECOMPANY PROFILE ABOUT TATA MOTORSABOUT TATA MOTORS

Founder Jamshedji Tata

Year of Establishment 1945

Industry Automotive

Business Group The Tata Group

Listings & its codes BSE - Code: 500570

NSE - Code: TELCO & TATAMOTORS

NYSE - Code: TTM

Corporate Office Bombay House

24, Homi Mody Street

Mumbai 400 001, India

Tel.: +(91)-(22)-56561676

Works Jamshedpur, Pune, Lucknow and Dharwad

E-mail am@tatamotors.com

rbc@telco.co.in (for international inquiries)

Website http://www.tatamotors.com/

http://www.tata.com/tata_motors

OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY

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

To access the final procedure of the settlement.To access the final procedure of the settlement.

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

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

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

RETIREMENT BENEFITSRETIREMENT BENEFITS

GratuityGratuity

Privilege Leave EncashmentPrivilege Leave Encashment

Provident FundProvident Fund

Medical BenefitsMedical Benefits

Telco Employee Pension Scheme (TEPS)Telco Employee Pension Scheme (TEPS)

SuperannuationSuperannuation

Bhavishya Kalyan Yojna (BKY)Bhavishya Kalyan Yojna (BKY)

Life Cover SchemeLife Cover Scheme

GRATUITYGRATUITY

Calculation of GratuityCalculation of Gratuity

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

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

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

PRIVILEGE LEAVE ENCASHMENTPRIVILEGE LEAVE ENCASHMENT

Calculated on last (Basic + DA) of the employeesCalculated on last (Basic + DA) of the employees and the number of and the number of

privilege leave balanceprivilege leave balance

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

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

PROVIDENT FUNDPROVIDENT FUND

Company Provident Fund Company Provident Fund

Employee Provident Fund Employee Provident Fund

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

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

MEDICAL BENEFITSMEDICAL BENEFITS

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

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

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

TELCO EMPLOYEE PENSION TELCO EMPLOYEE PENSION SCHEME (TEPS)SCHEME (TEPS)

Established by trust in 1997 Established by trust in 1997

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

Types of Member’s PensionTypes of Member’s Pension Superannuation PensionSuperannuation Pension Retirement PensionRetirement Pension Short service pensionShort service pension

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

TELCO SUPERANNUATION TELCO SUPERANNUATION SCHEMESCHEME

Non-contributory social security scheme Non-contributory social security scheme

Enforces compulsory savings Enforces compulsory savings

Gives the tax-benefit Gives the tax-benefit

Eligibility - All permanent employees Eligibility - All permanent employees

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

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

BHAVISHYA KALYAN YOJNA (BKY)BHAVISHYA KALYAN YOJNA (BKY) Eligibility – In case of death or during permanent or total disablement of the Eligibility – In case of death or during permanent or total disablement of the

employee while still in service irrespective of his grade employee while still in service irrespective of his grade

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

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

Stoppage of Kalyan Payment – Stoppage of Kalyan Payment – If any ward of the ex-employee is employed in any unit of the company.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 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 If the beneficiary expires but the payment will continue to the person next specified

as a beneficiary.as a beneficiary.

LIFE COVER SCHEMELIFE COVER SCHEME

Introduced from 1st November 1973 Introduced from 1st November 1973

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

Contribution – No contribution is required Contribution – No contribution is required

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

SCREEN SHOTS OF SETTLEMENT PROCEDURE IN HR DATA MASTER

SETTLEMENT PROCEDURESETTLEMENT PROCEDURE

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 POLICIESHR RULES AND POLICIES

CITY DEARNESS ALLOWANCESCITY DEARNESS ALLOWANCES GRADE

CITY

EG GRADE EMPLOYEES TM GRADE

EMPLOYEES

EG 3& 4 EG 2B & ABOVE TM 1, 2 & 3 TM 4 & 5

Mumbai 2000 3300 1400 1700

Delhi/Banglore/Kolkata/

Chennai

1750 2000 1150 1400

Pune/Statecapitals/Kanpur

/Nagpur/Dighi

1500 1750 850 1100

Jamshedpur and other cities 1250 1500 550 700

HOUSING LOANHOUSING LOAN An interest of 2% per annum (pre-tax) paid by the An interest of 2% per annum (pre-tax) paid by the

employeeemployee Company approved financiers are:Company approved financiers are:

HDFCHDFC ICICIICICI SBISBI IDBI BankIDBI Bank

GRADE GROUPS REVISED ENTITLEMENTS

EG 1A + & President 35 lakhs

EG 1A 30 lakhs

EG 1B, EG 1C, EG 2A, EG2B 25 lakhs

EG 3, EG 4, EG 3S,EG 4S 15 lakhs

M / TM 8 lakhs

VEHICLE LOANVEHICLE LOAN

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

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

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

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

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

GRADE GROUPS VEHICLE TYPE MAX. LOAN

(Rs. In lakhs)

MAX. TENURE

EG 1 & 2 Safari, Indigo, Indica /

Sumo

8.00 84 months

EG 3 & 4 Indigo, Indica / Sumo 6.00 84 months

TM 4 & 5 Indigo, Sumo 5.00 84 months

TM 1, 2 & 3 Indica 4.50 84 months

ST 7 to 9 Indica 3.00 120 months

ST 5 & ST 6 Indica 2.75 120 months

OP & MG Indica 2.75 120 months

The individual loan limits based on the grade is shown below

AMENITIES LOANAMENITIES LOAN

Available to all M / TM grade employeesAvailable to all M / TM grade employees

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

annum annum

GRADE GROUPS ENTITLEMENTS

M / TM Rs.50,000

SURVEY METHODOLOGYSURVEY METHODOLOGY RESEARCH APPROACH - Our research is based on Qualitative and RESEARCH APPROACH - Our research is based on Qualitative and

Quantitative research.Quantitative research.

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

SAMPLING UNITSSAMPLING UNITS

SAMPLE SIZESAMPLE SIZE

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

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

FINDINGS AND ANALYSIS OF FINDINGS AND ANALYSIS OF DATADATA

Q.No. 1Q.No. 1 Are you aware of the different retirement benefits provided by the Are you aware of the different retirement benefits provided by the

company to the employees?company to the employees?

Somewhat aware55%

Completely aware27%

Unaware18%

Completely aware

Somewhat aware

Unaware

Q.No. 2 Q.No. 2

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

Somewhat aware58%

Completely aware19%

Unaware23%

Completely aware

Somewhat aware

Unaware

Q.No. 3Q.No. 3

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

Yes89%

No11%

Yes

No

Q.No. 4Q.No. 4

Are you aware of your taxable retirement amount?Are you aware of your taxable retirement amount?

Yes58%

No42%

Yes

No

Q.No. 5Q.No. 5

Which do you believe would be more advantageous?Which do you believe would be more advantageous?

Lump sum payment

36%

Monthly payment64%

Monthly payment

Lump sum payment

Q.No. 6Q.No. 6

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

1 week to 4 weeks36%

Upto 1 week44%

After 1 month20%

Upto 1 week

1 week to 4 weeks

After 1 month

Q.No. 7Q.No. 7

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

Yes77%

No23%

Yes

No

Q.No. 8Q.No. 8

If yes, how would you rate it?If yes, how would you rate it?

Fair35%

Poor11%

Excellent12%

Good42%

Excellent

Good

Fair

Poor

Q.No. 9Q.No. 9

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

Yes73%

No27%

Yes

No

Q.No. 10Q.No. 10

Do you believe that your personal information is kept confidential?Do you believe that your personal information is kept confidential?

Yes92%

No8%

Yes

No

CONCLUSIONCONCLUSION A large number of employees of the organization are satisfied with the A large number of employees of the organization are satisfied with the

retirement benefits provided by the company after their separationretirement benefits provided by the company after their separation

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

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

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

The entire settlement procedure is a very sensitive area and the settlement cell 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 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 The settlement cell has to take extra precautions while setting the dues of the employees to ensure flawless and timely payment of settlement dues. employees to ensure flawless and timely payment of settlement dues.

THANK YOUTHANK YOU