Tata Motors unveils VRS scheme for staff

“As a part of these initiatives, the company has announced a Voluntary Retirement Scheme (VRS), presently intended for the workmen,” Tata Motors said in a statement. At present, there are about 16,000 workers on the company’s rolls.

To make the scheme more attractive Tata Motors has decided against making a one-time payout and will instead give a ‘generous benefit package’ that includes a monthly salary (Basic + DA) from the date of separation till the employee turns 60. This will help the company avoid taking a one-time financial hit on its books.

In addition, the scheme offers a provision of a medical insurance cover for a period of 10 years post separation. These will be in addition to normal retirement benefits such as PF, gratuity, superannuation (if applicable), encashment of unavailed leaves, LTA due but not claimed.

GENEROUS PAYOUT

To make the scheme more attractive Tata Motors has decided against making a one-time payout and will instead give a ‘generous benefit package’ that includes a monthly salary (Basic + DA) from the date of separation till the employee turns 60

There are about 16,000 workers on the Tata Motors’ rolls at present