Tata Steel bonus payout matches last year’s despite profit dip: Tata Workers’ Union president

Sanjeev Choudhary thanks T. V. Narendran, Atrayee Sanyal for adding Rs 30 crore to bonus amount

Jamshedpur, Aug 28: Tata Steel on Thursday announced annual bonus of Rs 303.13 crore for its employees for the financial year 2024-25.

The Tata Workers’ Union expressed gratitude to the company’s management for approving an amount that went beyond the strict formula, ensuring a fair distribution for employees.

Addressing a press conference at the Union premises on Thursday, Sanjeev Choudhary, President of Tata Workers’ Union, said, “The company’s net profit this year stood at Rs 9,255 crore, which is Rs 2,000 crore less than last year’s Rs 11,275 crore. Naturally, the formula-based payout was lower. Still, after continuous persuasion by Union office bearers and the kindness of Managing Director and CEO T. V. Narendran and Chief People Officer Atrayee Sanyal, the declared bonus has gone beyond the formula, bridging a large gap.”

Choudhary explained that while the formula calculated the bonus at Rs 272.83 crore, the difference from last year’s Rs 303.13 crore amounted to Rs 30.3 crore. “In the Union’s history, such a large shortfall has never been compensated. But this time, the management considered our request, and we are thankful for that,” he said.

Of the total bonus amount, Rs 152.44 crore will be disbursed in Jamshedpur alone. Choudhary said this would significantly boost the local economy ahead of the festive season. “Jamshedpur is a small city. When so much money flows in, the market, shopkeepers, and local businesses benefit immensely. Everyone waits eagerly for Tata Steel’s bonus because it fuels economic activity, especially ahead of Durga Puja,” he noted.

The Union President also highlighted the government’s role in supporting the steel industry. “We had approached the PMO and pushed for anti-dumping duty. The imposition of a 12.5% duty has helped the industry and contributed to this quarter’s performance. The positive results are expected to reflect more strongly in the next financial year,” he said.

On disbursement, Choudhary confirmed that employees would receive the bonus by  September 6, although banking holidays might slightly affect the timeline. He clarified that the bonus was not paid as a fixed percentage but was derived from the agreed formula. “The actual payout comes to around 16.69%, which is effectively 17%,” he added.

Expressing gratitude on behalf of the Union, Choudhary urged employees to use the money wisely. “We appeal to all members to spend the bonus on meaningful things like education and family needs. At the same time, let us celebrate the upcoming Durga Puja with joy,” he said.