Tata Steel signs new LTC agreement, significant hike in travel allowance for employees

Jamshedpur, May 30: In a major development for Tata Steel employees, a new agreement on Leave Travel Concession (LTC) was signed on Friday, bringing considerable financial benefits to employees across all grades. The agreement, which was pending since January 1, 2024, has now been finalized and will be effective from January 1, 2024, to December 31, 2027.

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Under the revised LTC structure, employees of all grades will now receive a uniform LTC amount of Rs 46,800 for every block of two years. This replaces the earlier system which had two separate slabs based on grade levels. As a result, employees have witnessed an increase in LTC ranging from Rs 8,200 to Rs 10,200, depending on their previous entitlement.

Previously, employees with a basic salary of up to Rs 30,750 in the old series and Rs 18,406 in the NS grade received Rs 36,600 as LTC. Under the new agreement, their LTC has increased by Rs 10,200, bringing the revised amount to Rs 46,800. For higher-grade employees, who earlier received Rs 38,600 as LTC, the increase is Rs 8,200, making their entitlement also Rs 46,800.

The agreement was signed by Atrayee Sanyal, Chief People Officer, Tata Steel Group and Sanjeev Kumar Choudhary, President, Tata Workers Union, along with General Secretary Satish Singh and Deputy President Shailesh Singh. Representing the management were Zubin Palia, Chief Group HR & IR at Tata Steel and Rakesh Dubey.

In addition to LTC, there has also been a revision in the Travel Allowance (TA) and Daily Allowance (DA) applicable to employees traveling on official duty. These revised rates will come into effect from July 1, 2025.

• Metro Cities (Mumbai, Kolkata, Delhi, Chennai):
  • Lodging: Increased from ₹3,000 to ₹4,500 per day
  • Meal Allowance: Increased from ₹700 to ₹1,000 per day
  • Allowance for accompanying friends/relatives: ₹1,000 per day
• State Capitals and Listed Cities:
  • Lodging: Increased from ₹2,500 to ₹3,500 per day
  • Meal Allowance: Increased from ₹700 to ₹1,000 per day
  • Allowance for accompanying friends/relatives: ₹1,000 per day
• Small Towns:
  • Lodging: Increased from ₹2,000 to ₹3,000 per day
  • Meal Allowance: Increased from ₹500 to ₹750 per day
  • Allowance for staying with relatives/friends: ₹750 per day
• During Travel:
  • Allowance: Increased from ₹500 to ₹750 per day
  • Vehicle Charges: ₹15 per km raised to ₹20 per km
  • Porterage Charges: Increased from ₹35 to ₹50 per point

Employees whose LTC was due between January 1, 2024, and April 2025 will receive the pending amount as arrears. These arrears will be included in the June 2025 salary, payable in July 2025.

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