12558 Jamshedpur employees to get Rs 158.31 crore
Tata Steel employee to get minimum bonus of Rs 34,290, maximum Rs 3,59,029
Bonus amount to be credited to employees bank account on Aug 22
Jamshedpur, Aug 18: The Tata Steel management and Tata Workers Union signed a Memorandum of Settlement on Wednesday, August 18, 2021 for payment of Annual Bonus for the accounting year 2020-21 amidst the COVID-19 pandemic.
The memorandum was signed by T V Narendran, CEO & Managing Director, Tata Steel and Sanjeev Choudhary, President, Tata Workers` Union.
The company announced an annual bonus of 16 percent for the year 2020-21 compared to 12.9 % during the previous year.
Despite a difficult year due to COVID-19, the total amount thus available for disbursement as annual bonus to applicable Divisions or units of the Company for the accounting year 2020-21 is Rs 270.28 crore.
The bonus amount has been increased by around 35 crore as compared to last year.
Last year, Rs 235.54 crores bonus was disbursed by Tata Steel for its eligible employees for the year 2019-20.
This is the fourth time in a row the bonus amount has exceeded Rs 200 crore. In 2019-20 the total bonus payout was 235.54 crores.
In 2018-19 the total bonus pay out was Rs 239.61 while in the year 2017-18 the amount came up 203.24 crore. The bonus formula signed by former Tata Workers Union President R Ravi Prasad was applicable this year also.
The minimum (at full attendance) and maximum annual bonus payable for 2020-21 will be Rs 34,290 and Rs 3,59,029 respectively.
The bonus amount will be credited to employees’ bank account shortly.
According to Union officials the bonus amount will be credited to employees bank account by 22 August, 2021.
Total number of employees to whom the bonus will be paid in Jamshedpur including Tubes and employees in T Series and NS Series of grades is 12,558 while total of 22871 employees of the company from all locations will be benefitted.
Of the Rs 270.28 crore bonus amount, Jamshedpur and Tube Division employee will get Rs 158.31 crore in comparison to Rs 142.04 crore they received last year.
Total bonusable amount for the financial year 2020-21 is Rs 1631.62 crore while the total bonus amount is 270.28 crore.
Average bonus amount for Jamshedpur and Tubes Divison comes up at Rs 126,066.
According to union officials, the maximum bonus at actual attendance for Old Series is Rs 3,59,029. Maximum bonus at actual attendance for NS Series is Rs 92,910 while minimum bonus at full attendance for NS Series is Rs 34, 290.
Also present during the signing of the bonus agreement were Atrayee Sarkar, Vice President, HR, Tata Steel, Zubin Palia, Chief Group HR & IR, Tata Steel along with Tata Workers Union Deputy President Shailesh Singh, General Secretary Satish Kumar Singh.
Bonus Formula
According to Tata Workers Union officials, the union and Tata Steel management have mutually agreed to continue the existing annual bonus scheme applicable for financial years 2017-18, 2018-19 and 2019-20 to be followed for financial year 2020-21 also and to pay annual bonus based on 1.5 % of Net profit (i.e Net Profit minus Net Profit as per audited annual accounts for year minus Earning from exceptional items) plus and amount arrived based on performance achievement on profitability (Profit per ton of saleable Steel), productivity ( tons of crude steel/ employee/ year) and safety (LTIFR) parameters to be distributed as annual bonus to all eligible employees of different locations of the company.