Jamshedpur, Aug. 11: The management and the recognised union of Tata Motors Limited today signed a wage revision agreement, according to which employees of the company would get an average increment of Rs 5,961 in their monthly salary.

The agreement signed between the company’s plant head S.B. Borwankar and president of Telco Worker’s Union, Rajendra Singh this evening will be effective from April 1, 2010 to March 31, 2013.

According to the agreement, the minimum wage for employees on the company roll in the revised wage structure will be Rs 11,428 per month. The transport allowance would also be hiked from Rs 885 to Rs 1,200 per month, while the leave travel allowance (LTA) would be increased to a minimum of Rs 800 per month from Rs 605 per month.

Singh expressed satisfaction over the new wage settlement. “Depending on grades, the minimum increment in monthly salary of employees would be Rs 5,799, while the maximum would be Rs 6,207,” he said, adding that the management has agreed to regularise the services of 270 temporary workers from September 1.

About 3,200 permanent employees of Tata Motors would benefit from the wage settlement. Singh also signed a similar agreement with the management of HV Transmissions Limited and HV Axles Limited, both subsidiaries of the automobile major.