Tata Steel employees secure landmark 7-year wage settlement

Employees to receive substantial wage hikes, new NPS benefits and enhanced allowances till 2031

Mail News Service

Jamshedpur, June 24: Tata Steel and its recognised unions have reached a comprehensive seven-year wage revision agreement for employees across both the NS Series and Old Series categories at Tata Steel Jamshedpur, including Tubes Division.

The settlement, effective from January 1, 2025 to December 31, 2031, promises substantial enhancements in salaries, allowances, retirement benefits and housing support, making it one of the most significant wage settlements in recent years.

According to the salient features of the agreement, employees in the NS Series will receive a Minimum Guaranteed Benefit (MGB) ranging from Rs 5,500 to Rs 9,300 per month, depending on pre-revised basic salary slabs. The average MGB has been pegged at Rs 8,810 per month. This benefit will be merged with the basic salary in two phases—on January 1, 2025 and April 1, 2026.

For employees under the Old Series, the minimum guaranteed benefit has been fixed at 10 per cent of Basic Pay plus Dearness Allowance, with the average monthly gain estimated at around Rs 12,535.
The benefit will similarly be incorporated into the revised basic salary in two equal installments.

The settlement retains the seven-year tenure and provides for substantial improvements in annual increments. For NS Series employees, revised monthly increment rates have been increased significantly, with increments rising to Rs 845 for NS-1, Rs 915 for NS-4, Rs 1,050 for NS-7, and Rs 1,150 for NS-12.

Employees in the Old Series will continue to receive annual increments at 3 per cent of basic salary on a cumulative basis. At the maximum pay grade, the increment for the lowest grade (OS-1) will rise from Rs 1,621 to Rs 2,582 per month, while for the highest grade (OS-12), it will increase from Rs 2,572 to Rs 4,097 per month.

The agreement also strengthens the Dearness Allowance structure. Variable Dearness Allowance for NS Series employees will continue at Rs 3 per point, while Old Series employees will continue to enjoy 100 per cent neutralisation against inflation.

A major highlight of the settlement is the upward revision of multiple allowances. Benefits related to vehicle maintenance, utility expenses, night shifts, education, mobile and internet usage, security and fire brigade duties, nursing staff, instructors at SNTI, conveyance, vigilance and executive protection have all been enhanced.
The total increase in common allowances amounts to Rs 3,225 per month for NS Series employees and Rs 3,000 per month for Old Series employees.

In a move aimed at encouraging retirement savings, the settlement introduces a new National Pension System (NPS) cash component of Rs 1,000 per month, allowing employees to channel the amount, along with certain allowances, into their NPS accounts.
The Team Performance Reward has also been enhanced by Rs 600 per month, subject to additional performance parameters.

Another notable provision is the introduction of House Rent Allowance (HRA) at 10 per cent of revised basic salary, effective from June 1, 2026, providing a significant boost to employees’ take-home earnings.
The settlement also increases benefits linked to higher technical qualifications and reorganisation. For employees in the lowest grade, the monthly benefit has been raised from Rs 575 to Rs 845, while for those in the highest grade it has increased from Rs 875 to Rs 1,150.

Data provided in the agreement indicates that the average overall increase arising from wage revision, allowances, HRA and contingency benefits could range from approximately Rs 18,116 per month for Block-1 employees to Rs 30,793 per month for Block-4 employees, reflecting a substantial enhancement in employee compensation.

The agreement is expected to benefit thousands of Tata Steel employees and is being viewed as a landmark settlement that balances employee welfare with the company’s long-term growth and competitiveness objectives.