Clarification on service weightage - we are providing Rs.25/- per employee as per their completed service years

Hi All, I'm working as an Accountant in a manufacturing company. We have employees union in our company. We have signed an agreement with employees regarding pay hike and other benefits. My doubt is on Service weightage (we are providing Rs.25/- per employee as per their completed service... earlier we had an agreement in the year 2017. That time for an employee, for example, we paid 10 years Rs.30/- per year and again they are asking for 10 years in current year agreement (we proposed for 3 yrs and union says 10 yrs). Please advise me on this... how to go about this?
9th February 2021 From India, Hyderabad

Dear Lakshman,
Service weightage is the concept to compensate the senior employees in terms of length of service rendered in the establishment than their juniors during every wage revision. It is generally followed when the labor force comprises of different age groups. Of course, if you are usually paying it at every fresh revision of wages, no harm in that. You can continue the same by striking a balance between the management's offer and union's demand. But to give you an appropriate answer to your query, the no of employees in different age group is required.
9th February 2021 From India, Salem

Dear sirs,
We have given service weightage in 2017 Rs.30/- per completed service years (7 yrs). Against our employees union is asking now for full years in includes last paid years also. do we need to pay for 10 years or balance years. herewith i m attaching employees data..
Kindly advise further in this regard...
Regards,
Lakshmana Murthy
10th February 2021 From India, Hyderabad

Attached Files (Download Requires Membership)

Employee age details.pdf (25.2 KB, 79 views)

When service weightage is paid for, it includes and provides for every completed year of service. But there could be a graded scale, for instance for the first 10 years of service it could be Rs. 30/ as has already been agreed and for those with more than 10 years of service it could be a better amount (>Rs. 30) for the additional years put in, as could be agreed with the unions, instead of going for a uniform rate for all the years. So, this in a way will reward the employees with longer service. Since presently the number of employees with more than 10 years is only two, the additional outflow will not be sizeable now.
10th February 2021 From India, Mumbai

Dear Sir, It does mean that, we need to pay for 10 yrs (though we paid in the year 2017-for 7 yrs ser wtg) I m little confused. Please help me out in this regard.... Regards, V.Lakshmana Murthy..
10th February 2021 From India, Hyderabad

@Lakshman2008
What is revealing from your post that in 2017 the employees had been paid @ 30 x 7 =210/- as service weightage during Union agreement. Now union is again demanding 10 yrs service weightage - this is not correct approach by union. You may agree for service weightage for rest 3 /4 years may be with increase rate instead of 30/- per year - may be 40/- per year.
S K Bandyopadhyay ( Howrah, WB)


11th February 2021 From India, New Delhi

Dear Lakshmana Murthy,
Senior Members have already provided you valuable suggestions.
My observation is on your details of employees list. It is observed from the list that out of 12 employees 4 were appointed at verge of completing 18 yrs. of age and remaining 3 were appointed while they were 17 yrs. of age.
Suresh
17th February 2021 From India, Thane