The new wage settlement will be effective from November 1, 2003 and the annual wage growth of employees will now come down to 3.5 per cent from nine per cent earlier.
Further, the one-time increase in wages has also been brought down to 5.9 per cent from the 27.18 per cent as per the previous wage settlement effective since 1996. With this wage settlement, Marutis normally high wage will be aligned closer to the market, a company release said.
As per the new wage settlement, dearness allowance has been delinked from changes in the consumer price index and basic pay. Instead, Maruti workers would now receive a fixed hike in their dearness allowance.
By severing the link between consumer price index and employee compensation, the new settlement brings the wage structure in tune with market competitiveness, the company said.
By severing the link between consumer price index and employee compensation, the new settlement brings the wage structure in tune with market competitiveness.
Further, allowances have also been delinked from changes in the basic pay and dearness allowance. Instead, they have been merged to form a consolidated perquisite basket. This will simplify the wage structure. For the benefit of the workers, the new wage settlement provides for a one-time lump sum payment of Rs 40,000 to each