Jharkhand government mandates fair wages for Tata Steel employees

This multi-tiered compensation system acknowledges and rewards the diverse skills and contributions of Tata Steel employees.


The Jharkhand government has recently introduced a new minimum-wage rate that now applies to Tata Steel. To ensure compliance with this updated wage standard, the management of Tata Steel has issued directives to all vendors, instructing them to adjust their employees’ salaries according to the new rate, effective 1 October. This move aligns with the company’s commitment to uphold local labour regulations.

Additionally, an agreement dating back to 10 August, 1990, between Tata Steel and the labour department of the former Bihar government is still in effect. This agreement states that contract employees working at Tata Steel will receive an extra Rs 1.40 per week if they work continuously for six days in a week. This practice has been consistently maintained to ensure that employees are fairly compensated for their continuous efforts.

Furthermore, as part of the new wage adjustments, there’s a focus on providing a flexible dearness allowance (DA) to the employees. This variable DA accounts for changes in the cost of living, ensuring that employees receive suitable compensation to meet their basic needs in varying economic conditions.

Unskilled labourers (sweepers, chowkidars, cleaners, and so on) now earn a base salary of Rs 331, along with a variable dearness allowance (VDA) of Rs 93.10, resulting in a total compensation of Rs 424.18.

Semiskilled workers will now receive Rs 460.44 as their base pay, with an additional VDA of Rs 129.63, making their total earnings Rs 590.07.

Highly skilled employees possessing specialised skills are now entitled to a base salary of Rs 527.38.

Additionally, they will receive a VDA of Rs 148.54, resulting in a total pay of Rs 675.92.

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