UNDERSTANDIN

G SOCIAL
SECURITY
BENEFITS
Submitted By :- Ankit Singh
Section :- MAM 5th
ERP :- 0181MAM054
 Companies Selected :-
TATA STEEL
• Tata Steel was established in India as
Asia’s first integrated private steel
company in 1907. With this, they also
developed India’s first industrial city at
Jamshedpur. Today, they are among the
leading global steel companies. The
annual crude steel capacity across
Indian operations is nearly 13 MnTPA
and we registered a turnover of US
$7889 Mn in FY 2017. They also set up
our second greenfield steel plant in the
eastern state of Odisha; commissioning
the first phase (3 MnTPA) of 8M tones
of steel capacity in 2016.
GAIL
• The Gas Authority of India Ltd.
(GAIL), one of India's leading Public
Sector Enterprises, is the largest gas
transmission and marketing
company in the Country. The
Company, possessing a well
developed and efficient
infrastructure, was established as a
wholly owned Company of the
Government of India in August,
1984 with 100% equity held by the
Government of India and, within a
short time, it has grown into one of
the ‘Navaratna’ enterprises and is
ranked among the top ten
companies in India
Retirement Benefits In TATA Groups

The current retirement policy which is running was introduced

in early 1990’s to attract more young age employees .
Retirement Age – 70 years
Employees at the time of retirement get :-
1. Provident Fund – 12% of Basic + Da
2. Pension – 2% Basic + Da (for both organizational and governmental)
3. Gratuity – For first 15 years of employment 15 days of salary every
year
is added to gratuity money along with 30 days salary for
every next years if employment is more than 15 years.
 Changes That Occurred during the years
Retirement Age :- Earlier the retirement age for the employees was 75 years and
later it was reduced to 70 years
Provident Funds :- At the time of introduction of the retirement policy there was a
deduction of 10% from DA and Basic pay for the head under
provident fund but it often changes at the time of agreement
which happens after every specific time (currently 12%)
Introduction and changes in VRS :- In 1995 the Company has initiated a
voluntary retirement scheme (VRS) around 29000
employees availed the offer
 Introduction of VRS
 VRS was introduced with the name of Sunehre Bhavishya Ki Yojana.
 The VRS scheme is targeted at the less-skilled employees who are unable to cope
with the demands of digital initiatives and giving them an option of Early
Settlement Scheme (ESS).
 Sunehre Bhavishya Ki Yojana was replaced by Sunehre Bhavishya Ki Yojana 2.0 on
2015 agreement.
 Before the introduction of Sunehre Bhavishya Ki Yojana 2.0, organisation also
introduced job for job scheme where after taking the VRS the employees ward (son or
daughter) could also avail the job if he/she has the qualifications for the job.
 Changes in the VRS
SBKY – SBKY2.0 :-
As per the scheme, the Company will make three offers to its employees. Under the first option,
employees will keep receiving a monthly amount till 75 years of age. The second option offers a lump
sum amount immediately and a monthly amount till 60 years of age. As per the third option, all
retirement benefits will be invested in systematic investment plans (SIPs) and mutual funds based on
employees’ choice.
The Company also offers accommodation and medical benefits, which are broadly the same for
all three options. Employees opting for VRS can stay at the company quarters till they turns 58 or have
four years left in service, whichever is earlier. Medical benefits for self and spouse will be lifelong at Tata
Main Hospital, Jamshedpur. For the employees who choose to settle outside Jamshedpur, a medical
insurance scheme worth Rs 2 lakh is offered.
 Retirement Benefits in GAIL
 Maximum Benefit : The maximum benefit payable under the Scheme to the superannuated employee will be
50% of the last salary drawn for a minimum period of 32 years in GAIL (India) Limited,

 Minimum Benefit : The Minimum pension payable under the scheme to the superannuated employees will be
14% of the last salary rendering a minimum services of 7 years in GAIL (India) Limited .

A.For employees separating from GAIL after attaining the age of  50 years

1. Minimum no. of years of qualifying service in GAIL    -       Nil

2. Minimum no. of years of contribution in GAIL          -         7 years

3. Benefit in terms of the following:

i. Minimum pension after at least 7 years of contribution – 14% of Basic Pay + Spl. Pay + Spl Pay (on redesignation
) Personal Pay (on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for Medical Officers) + DP + DA
 Continuation
i. Pension for those rendering 7 to 32 completed years of service – 14% of Basic Pay+ Spl. Pay (on redesignation )
Personal Pay (on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for Medical Officers) + DP + DA
PLUS 1.44% for each completed year of service in excess of 7 years.

ii. Maximum Pension for more than 32 years of service – 50 % of Basic Pay + Spl. Pay + Spl. Pay (on redesignation )
+ Personal Pay(on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for Medical Officers) + DP + DA

B.  For employees separating from GAIL before attaining the age of 50 years

• ® Minimum no of years of qualifying service in GAIL       - 15 years

® Benefit in terms of the following :

1. If Minimum qualifying service in GAIL is less than 15 years – Refund of the contribution with 6% interest p.a.

2. If Minimum qualifying service in GAIL is more than 15 years – Pension in terms of the following provisions :
 Continuation

i. Minimum pension after at least 7 years of contribution – 14% of Basic Pay + Spl. Pay + Spl. Pay ( on
redesignation ) + Personal Pay  (on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for
Medical Officers) + DP + DA.

ii. Pension for those rendering 7 to 32 completed years of service – 14% of Basic Pay+ Spl. Pay (on
redesignation ) Personal Pay (on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for Medical
Officers) + DP + DA PLUS 1.44% for each completed year of service in excess of 7 years.

iii. Maximum Pension for more than 32 years of service – 50 % of Basic Pay + Spl. Pay + Spl. Pay (on
redesignation ) + Personal Pay(on stagnation) + Spl. Personal Pay + Non Practicing Allowance (for
Medical Officers) + DP + DA