New settlement raises minimum benefit, allowances and grades for seven years from 2025
Key Points:
- Tata Steel signs new wage pact for NS and OS series staff
- Settlement to remain in force for seven years till 2031
- Minimum guaranteed benefit and allowances revised upward
JAMSHEDPUR – Tata Steel has finalised a fresh wage settlement covering NS series, OS series and Old series employees at its Jamshedpur unit, including Tubes Division, with revised pay scales and allowances effective from January 2025.
The settlement document outlining the salient features was reviewed by this publication. It details changes spanning minimum guaranteed benefits, dearness allowance, increments, grade structures and several other components.
NS Series: Minimum Benefit And Grade Revision
For employees under the NS series, the minimum guaranteed benefit has been fixed differently across grades. The lowest grade, NS-1, will get Rs 5,500 per month.
Meanwhile, the highest applicable slab goes up to Rs 9,300 per month. This depends on the pre-revised basic pay slab of each employee.
The average minimum guaranteed benefit works out to Rs 8,810 per month. This amount will be merged into basic salary in two parts.
The first instalment takes effect from January 1, 2025. The second tranche will follow from April 1, 2026.
The settlement period for the NS series remains fixed at seven years, similar to earlier agreements.
Increment rates have also been revised across categories. For NS-1, covering matriculates with English, the increment rises from Rs 505 to Rs 845 per month.
Workers in the NS-4 category, comprising AITT and ITI-trained staff, will see increments grow from Rs 575 to Rs 915 per month. NS-7 employees, who hold diploma or JET qualifications, get a raised increment of Rs 1,050, up from Rs 710.
At the top end, NS-12 grade employees will receive an increment of Rs 1,150 monthly, compared to the earlier Rs 810.
| NS Grade | Existing Increment (Rs/month) | Revised Increment (Rs/month) |
|---|---|---|
| NS-1 | 505 | 845 |
| NS-4 | 575 | 915 |
| NS-7 | 710 | 1,050 |
| NS-12 | 810 | 1,150 |
Revised Grade Structure And Pay Scales
The grade structure for NS series employees has also been overhauled, effective from January 1, 2025. Four broad groups will now cover twelve NS grades.
Group-I includes NS-1 to NS-3. Under the revised structure, NS-1 pay will range between Rs 12,825 and Rs 27,225, against the earlier range of Rs 12,825 to Rs 20,425.
Group-II spans NS-4 to NS-6. NS-6 employees will see their pay scale stretch up to Rs 38,805, compared with Rs 32,005 previously.
Group-III, covering NS-7 to NS-9, will have NS-9 employees earning up to Rs 45,795 at the top of the band. The earlier ceiling stood at Rs 38,995.
Group-IV, the highest band comprising NS-10 to NS-12, will see NS-12 employees’ pay scale extend up to Rs 49,105, an increase from the earlier maximum of Rs 42,305.
| Group | Grade | Existing Pay Scale (Rs) | Revised Pay Scale (Rs) |
|---|---|---|---|
| Group-I | NS-1 | 12,825-380-20,425 | 12,825-720-27,225 |
| Group-I | NS-2 | 17,495-515-27,795 | 17,495-855-34,595 |
| Group-I | NS-3 | 17,695-525-28,195 | 17,695-865-34,995 |
| Group-II | NS-4 | 19,405-575-30,905 | 19,405-915-37,705 |
| Group-II | NS-5 | 19,655-590-31,455 | 19,655-930-38,255 |
| Group-II | NS-6 | 19,905-605-32,005 | 19,905-945-38,805 |
| Group-III | NS-7 | 23,495-710-37,695 | 23,495-1,050-44,495 |
| Group-III | NS-8 | 23,845-725-38,345 | 23,845-1,065-45,145 |
| Group-III | NS-9 | 24,195-740-38,995 | 24,195-1,080-45,795 |
| Group-IV | NS-10 | 25,205-770-40,605 | 25,205-1,110-47,405 |
| Group-IV | NS-11 | 25,605-790-41,405 | 25,605-1,130-48,205 |
| Group-IV | NS-12 | 26,105-810-42,305 | 26,105-1,150-49,105 |
Dearness Allowance And New Benefits
Variable dearness allowance will continue at Rs 3 per point. However, it will rise in line with any increase in the All India Consumer Price Index over a base index of 9,473.
On the other hand, new joinees will continue to receive a zero-based dearness allowance. Fixed dearness allowance has also been revised.
The existing fixed dearness allowance slabs of Rs 800 and Rs 500 will move up to Rs 1,300 and Rs 1,000, respectively. Fresh recruits joining after January 1, 2025, will continue at the Rs 500 slab.
In addition, a new NPS Cash benefit of Rs 1,000 per month has been introduced. Employees can choose to channel this amount into their NPS fund.
Besides, workers can also divert their utility allowance and personal allowance towards NPS. Meanwhile, the Team Performance Reward has been increased by Rs 600 per month, with additional eligibility parameters.
House Rent Allowance will be revised to 10 percent of the new basic salary. This change takes effect from June 1, 2026.
Common Allowances Hiked Across Categories
A host of common allowances have also been revised upward for NS series employees. The vehicle maintenance allowance will increase by Rs 75 to Rs 80 per month.
Utility allowance moves up from Rs 550 to Rs 800 per month. Meanwhile, the night shift allowance rises from Rs 160 to Rs 225 per month.
Education allowance has been hiked from Rs 600 to Rs 1,000 per month. Mobile and internet allowance will go up from Rs 300 to Rs 400 per month.
Personal allowance, too, sees a jump from Rs 500 to Rs 725 per month. Together, these revisions account for a total increase of Rs 3,225 per month in common allowances.
Additional benefits cover security and fire brigade staff, nursing personnel laundry allowance, and special allowance for senior instructors. Conveyance charges have also been extended to staff attending local courts or government offices.
Old Series And OS Grade Revisions
The Old Series at Tata Steel Jamshedpur, including Tubes Division, has received a separate set of revisions. The minimum guaranteed benefit here stands at 10 percent of basic plus dearness allowance.
This amount will be credited in two equal parts. The average minimum guaranteed benefit for this category comes to around Rs 12,535 per month.
The grade structure spans 20 years, continuing a merger of minimum guaranteed benefit and variable dearness allowance. Tenure for this settlement also remains seven years.
For the lowest grade, OS-1, the existing maximum pay slab of Rs 54,025 will rise to Rs 86,055. The highest grade, OS-12, will see its ceiling go up from Rs 85,720 to Rs 1,36,535.
| Grade | Existing Maximum (Rs/month) | Revised Maximum (Rs/month) |
|---|---|---|
| OS-1 (Lowest) | 54,025 | 86,055 |
| OS-12 (Highest) | 85,720 | 1,36,535 |
Increments for this category will continue at 3 percent of basic salary, capped at the grade maximum. For OS-1, the increment at maximum will rise from Rs 1,621 to Rs 2,582 per month.
For OS-12, the corresponding increment will climb from Rs 2,572 to Rs 4,097 per month. Variable dearness allowance will continue at full neutralisation for this category as well.
It will be paid on the revised basic salary or capped at the grade maximum, whichever works out lower. A stagnation increment benefit has additionally been introduced for NS-6 employees stagnated in their grade for over four years, based on safety and skill parameters.
Financial Impact Of The Settlement
According to the document, the overall wage revision carries a phased financial impact across four wage blocks. For the NS series, the total monthly increase ranges between Rs 16,111 and Rs 18,747 across the four blocks.
A source familiar with the negotiations said, “This settlement balances employee welfare with the company’s long-term wage structure.” For the Old Series, the total increase ranges between Rs 18,116 and Rs 30,793 per month across the blocks.
This includes increases in basic pay, fixed dearness allowance, common allowances and house rent allowance, along with a contingency factor of 44 percent. The settlement covers a seven-year period from January 1, 2025, to December 31, 2031.
Tata Steel has been among the largest steel producers in the country, with its Jamshedpur plant being its flagship integrated facility. Periodic wage settlements with workers form a key part of its long-term industrial relations framework, and the company has historically renewed such agreements every few years following negotiations between management and recognised unions.
