This document provides details about a project report on retirement benefits and settlement procedures at Tata Motors Ltd. It includes sections on the automobile industry and Tata Motors company profiles, objectives of the study, retirement benefits like gratuity and leave encashment, HR policies, survey methodology used, findings from a survey of employees, and screenshots of the settlement process in the HR system. The key information presented is about retirement benefits and procedures at Tata Motors Ltd. based on research and employee feedback.

1. A PROJECT REPORT ONA PROJECT REPORT ON
SUMMER INTERNSHIPSUMMER INTERNSHIP
ININ
TATA MOTORS LTD.TATA MOTORS LTD.
JAMSHEDPUR, JHARKHANDJAMSHEDPUR, JHARKHAND
A PROJECT ON RETIREMENTA PROJECT ON RETIREMENT
BENEFITS AND SETTLEMENTBENEFITS AND SETTLEMENT
PROCEDURES ANDPROCEDURES AND
HR POLICIESHR POLICIESPRESENTED BY:
LAWI ANUPAM
Roll No.-1224108221
MBA (IB) 2008-10
GITAM INSTITUTE OF INTERNATIONAL BUSINESS
VISAKHAPATNAM

2. 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

3. 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

4. OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY
 To study about the retirement benefits of the retired orTo study about the retirement benefits of the retired or
separated employees.separated 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 finalTo 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 benefitsTo evaluate employees’ satisfaction on the retirement benefits
provided by the company, settlement procedure and aboutprovided by the company, settlement procedure and about
company’s HR policies.company’s HR policies.

5. 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

6. 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 eachService between 25 to 30 years - 18 days of salary for each
year in excess of 25 yearsyear in excess of 25 years
 Service above 30 years - 1 month salary for each year inService above 30 years - 1 month salary for each year in
excess of 30 yearsexcess of 30 years

7. PRIVILEGE LEAVE ENCASHMENTPRIVILEGE LEAVE ENCASHMENT

Calculated on last (Basic + DA) of the employeesCalculated on last (Basic + DA) of the employees and the number ofand 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.
CalculationCalculation
(Basic + DA) * Privilege Leave Balance / 30(Basic + DA) * Privilege Leave Balance / 30

8. PROVIDENT FUNDPROVIDENT FUND
 Company Provident FundCompany Provident Fund
 Employee Provident FundEmployee 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 of90% of Provident Fund accumulation can be withdrawn in the last year of
serviceservice

9. MEDICAL BENEFITSMEDICAL BENEFITS
 EG grade employeesEG grade employees and their spouse are coveredand their spouse are covered
underunder ‘Tata Motors Health Scheme’‘Tata Motors Health Scheme’
 Non-EG grade employee (i.e. for TM and ENon-EG grade employee (i.e. for TM and E
Grade)Grade) and his spouse, are covered underand his spouse, are covered under ‘Group‘Group
Medical Scheme’Medical Scheme’
 Tata Motors Limited has its own hospital TataTata Motors Limited has its own hospital Tata
Motors HospitalMotors Hospital only in Jamshedpuronly in Jamshedpur

10. TELCO EMPLOYEE PENSIONTELCO EMPLOYEE PENSION
SCHEME (TEPS)SCHEME (TEPS)
 Established by trust in 1997Established by trust in 1997
 Contribution is made from the Company’s Provident Fund contribution whichContribution 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
 BeneficiariesBeneficiaries
 EmployeeEmployee
 Widow and children on the death of the memberWidow and children on the death of the member
 Disabled member or child till deathDisabled member or child till death
 The nomineeThe nominee

11. TELCO SUPERANNUATIONTELCO SUPERANNUATION
SCHEMESCHEME
 Non-contributory social security schemeNon-contributory social security scheme
 Enforces compulsory savingsEnforces compulsory savings
 Gives the tax-benefitGives the tax-benefit
 Eligibility - All permanent employeesEligibility - All permanent employees
 ContributionsContributions
 Ordinary Annual ContributionOrdinary Annual Contribution
 Extraordinary Lump Sum Contribution for Past ServiceExtraordinary Lump Sum Contribution for Past Service
 Final ContributionFinal Contribution
 BenefitsBenefits
 1/3rd of total accumulated amount can be commuted which is non-taxable1/3rd of total accumulated amount can be commuted which is non-taxable
 2/3rd amount is used to buy annuities from LIC for pension payment2/3rd amount is used to buy annuities from LIC for pension payment

12. BHAVISHYA KALYAN YOJNA (BKY)BHAVISHYA KALYAN YOJNA (BKY)
 Eligibility – In case of death or during permanent or total disablement of theEligibility – In case of death or during permanent or total disablement of the
employee while still in service irrespective of his gradeemployee while still in service irrespective of his grade
 Benefit – 50% of the last drawn basic salary (Basic + DA) or Rs.4000Benefit – 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 normalwhichever is more in the form of monthly payment till the date of normal
retirementretirement
 BeneficiaryBeneficiary
 Ex-employee, in cases of permanent and total disablement.Ex-employee, in cases of permanent and total disablement.
 Spouse, In case of deathSpouse, 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 specifiedIf the beneficiary expires but the payment will continue to the person next specified
as a beneficiary.as a beneficiary.

13. LIFE COVER SCHEMELIFE COVER SCHEME
 Introduced from 1st November 1973Introduced from 1st November 1973
 Eligibility - In case of death or during permanent or totalEligibility - In case of death or during permanent or total
disablement of the employeedisablement of the employee
 Contribution – No contribution is requiredContribution – No contribution is required
 Benefits - nominee shall be paid a sum which is equal to the ofBenefits - nominee shall be paid a sum which is equal to the of
20 months last drawn salary * (Basic + DA) subject to a20 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.

14. SCREEN SHOTS OF SETTLEMENT PROCEDURE IN HR DATA
MASTER
SETTLEMENT PROCEDURESETTLEMENT PROCEDURE

15. Pay roll view:

16. Display of Payroll in Zrpy00150:

17. Contd.

18. Generating cheque through system F110:

19. Contd.

20. Contd.

21. Bank Advice:

22. Cheque spool in sp01:

23. Mail to IBM for
printing:

24. 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

25.  HOUSING LOANHOUSING LOAN
 An interest of 2% per annum (pre-tax) paid by theAn 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

26.  VEHICLE LOANVEHICLE LOAN
 Purchase of four and two wheelers to all the permanentPurchase of four and two wheelers to all the permanent
employeesemployees
 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, 000The maximum loan for two-wheeler vehicle is Rs.40, 000
 The offer of car loans is only for the permanent M / TM gradeThe 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

27. 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

28.  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 annumEligible for the loan at an interest of 2% per annum
GRADE GROUPS ENTITLEMENTS
M / TM Rs.50,000

29. SURVEY METHODOLOGYSURVEY METHODOLOGY
 RESEARCH APPROACH - Our research is based on Qualitative andRESEARCH APPROACH - Our research is based on Qualitative and
Quantitative research.Quantitative research.
 SAMPLE DESIGN - We used the probability research design in theSAMPLE 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 directlySOURES OF DATA COLLECTION - Primary data is collected directly
from the employees of TATA Motors Limitedfrom the employees of TATA Motors Limited
 SAMPLING METHODS - We have performed the random sampling forSAMPLING METHODS - We have performed the random sampling for
our survey.our survey.

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

31. Q.No. 2Q.No. 2
 Are you aware of the special superannuation scheme provided by theAre you aware of the special superannuation scheme provided by the
company?company?

32. 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?

33. Q.No. 4Q.No. 4
 Are you aware of your taxable retirement amount?Are you aware of your taxable retirement amount?

34. Q.No. 5Q.No. 5
 Which do you believe would be more advantageous?Which do you believe would be more advantageous?

35. Q.No. 6Q.No. 6
 What is the time taken for the settlement after the notice of retirement given andWhat is the time taken for the settlement after the notice of retirement given and
after completing all documentations?after completing all documentations?

36. Q.No. 7Q.No. 7
 Are you happy with the online settlement procedure and the time taken byAre you happy with the online settlement procedure and the time taken by
the company to complete the process?the company to complete the process?

37. Q.No. 8Q.No. 8
 If yes, how would you rate it?If yes, how would you rate it?

38. 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?

39. 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?

40. CONCLUSIONCONCLUSION
 A large number of employees of the organization are satisfied with theA 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 bymedical facilities, taxable retirement amount, and other benefits provided by
the companythe company
 They are happy with the settlement procedure, the time taken for theThey 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 andHR 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 cellThe entire settlement procedure is a very sensitive area and the settlement cell
has to be highly cautious while entering the details of the retired employeeshas 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 theThe 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.

41. THANK YOUTHANK YOU