Tata Motors VRS Scheme Date Benefits|Employees taking Voluntary Retirement Scheme (VRS) from Tata Motors can choose monthly payment (Package 1) or lump sum (Package-2). Its circular was issued on Wednesday night by the orders of Plant Head Ravindra Kulkarni. In this, VRS offer will be from 8th November to 8th December. In this, permanent employees of the company whose age is more than 45 years as on 31 December 2023 can avail the benefits of the scheme. The employee will be informed two days after applying for VRS. Tata Motors Benefits and other information of VRS will be given at the management level. The final decision on the application will be taken by the management. Apart from the benefits of employees’ PF, gratuity, scheme amount received on separation from the company, pension scheme, the employee will also get the benefit of encashment of PL. Employees opting for Package 2 can avail lump sum payment in maximum two installments (i.e. first installment during FY 2023-24 and last installment in FY 2024-25 before September 2024), as the case may be. If an employee chooses the lump sum package, it will be paid once after deducting all outstanding loans, medical advances (pending, if any) etc. and TDS at source.
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If more than 539 employees take VRS, they will get group incentive benefit of Rs 1.40 lakh.
In Package 1, if an employee wants not to take salary every month and takes the money for his entire service in lump sum, then that option is also given in VRS 2023 like before. In this, the full payment will be given after calculating the dues, loan, medical advance and tax deduction.
Group incentive will be given if the number of VRS is high
Considering the long service of the employees with the company, the management has decided to pay group incentive based on the total number of VRS applications. Under this, if the final number of applications of employees taking VRS is 216 to 323, then the group incentive per employee will be Rs 50 thousand, if 324 to 431 applications are Rs 75 thousand, if 432 to 538 are Rs 1 lakh and above 539, it will be Rs. On receipt of the application, the employees taking VRAC will get the benefit of group incentive of Rs 1 lakh 40 thousand. Group incentive will be paid with full and final settlement on the basis of scheme option only. Which will be subject to Tax Deducted at Source (TDS) as per the Income Tax Act and rules.
Once the application is submitted, the employee cannot withdraw
Once the VRS application is submitted, the employee will not be able to withdraw it for any reason. Interested employees can contact the concerned department head and ER officer to understand the benefits and fill the application form. Employees will have to apply for this voluntarily. The benefit that the employees will get for this will be calculated on the basis of the last pay scale received on December 1, 2023. No longer being on the rolls of the Company after taking VRS will not be entitled to any benefits arising from any salary settlement, awards or schemes issued by the Company.
Deduction will be done under the provisions of Income Tax Act
Income tax will be deducted at source as per the provisions of the Income Tax Act and the rules made thereunder. The Company will be entitled to deduct from the pay-out any additional payment made or any outstanding amount made before or after VRS. The Company will not be entitled to deduct any premium or loan installment of LIC or any other financial institution from the pay-out.
Employees will get this benefit
How much salary will you get till 31st December 2023?
90 percent of the last salary will continue to be received from 45 years to 50 years.
100 percent of last salary till 50 years or 55 years
110% of the last salary i.e. the amount received by a person aged 55 years or above.
10 percent more than that
You will also get this benefit
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The settlement of provident fund amount will be as per the procedure by EPFO.
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If the employee takes a lump sum amount, it will be given after adding it to the current salary.
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Salary means basic, fixed DA (fixed dearness allowance), variable DA (variable dearness allowance), personal pay to be received every month till December 1, 2023, according to which everyone will get benefits.
Applicable in medical benefits package
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Rs.1,25,000 per individual per year for hospitalization of employee and spouse
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Rs.2,000 per person per year for home treatment or OPD facility at Tata Motors Hospital
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Medical benefits will be available only for 10 (ten) years from the date of separation of the employee from the services of the company.
Payment Term: Package 1 Monthly Payment
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A- Pay-out The period starts from the date of separation of the employee from the company and continues till the separated employee attains the age of 60 years as per the records of the company.
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B – Pay-out In the event of death of the separated employee during the period, the beneficiary will receive 50% of the monthly pay-out during the pay-out period. In case of death of the employee taking VRS, his wife will get the benefit as per the company records. In the event of death or legal separation of the wife, the eldest child (not being a married daughter), unless he has attained the age of 21 years as per company records. After the eldest child attains the age of 21 years, the next child (not being a married daughter), until he attains the age of 21 years as per the records of the company. In case of death of a separated unmarried employee, the dependent parent i.e. mother or father, as the case may be.