11676 Jamshedpur employees to get Rs 186.51 crore
Tata Steel employee to get minimum bonus of Rs 42,561 maximum Rs 4,61,019
Amount to be credited to bank accounts by September 11
Jamshedpur, Sep 4: The Tata Steel management and Tata Workers Union signed a Memorandum of Settlement on Monday, September 4, 2023 for payment of Annual Bonus for the accounting year 2022-23.
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 20 percent for the year 2022-23.
The total amount thus available for disbursement as annual bonus to applicable Divisions or units of the Company for the accounting year 2022-23 is Rs 314.70 crore.
The minimum and maximum annual bonus payable for 2022-23 will be Rs 42,561 and Rs 4,61,019 respectively.
According to Union officials the bonus amount will be credited to employees’ bank account by 11 September, 2023.
Total number of employees to whom the bonus will be paid in Jamshedpur including Tubes is 11,676 while total of 23,445 employees of the company from all locations will be benefitted.
Of the Rs 314.70 crore bonus amount, Jamshedpur and Tube Division employee will get Rs 186.51 crore in comparison to Rs 188.64 crore they received last year.
Total bonusable amount for the financial year 2022-23 is Rs 1573.51 in comparison to Rs1587.55 crore in the previous year.
Average bonus amount for Jamshedpur and Tubes Divison comes up at Rs 1,59,738.
According to union officials, the maximum bonus at actual attendance for Old Series is Rs 4,61,019.
Maximum bonus at actual attendance for NS Series is Rs 1,21,718 while minimum bonus at full attendance for NS Series is Rs 42,561.
Since majority of our employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus (Amendment) Act, 2015, they are not eligible for bonus under the Act. However, respecting our old traditions, the Company is going to pay bonus to all employees in the unionized category.
Also present during the signing of the bonus agreement were Atrayee Sanyal, Vice President (HRM) and other Sr. Executives of the company along with Shailesh Kumar Singh, Dy. President, Tata Workers’ Union, Satish Kumar Singh, General Secretary, Tata Workers’ Union, Rakesh Prasad, Dy. Labour Commissioner, Jamshedpur & Conciliation Officer, Govt. of Jharkhand.
Bonus Formula
According to Tata Workers Union officials, the union and management had mutually agreed to continue the existing annual bonus scheme Net profit means Net applicable for financial years 2021-2022, 2022-2023 and 2023-2024 and pay annual bonus based on 1.5 % percentage of Net Profit excluding profit from Tata Steel Meramandali ( Net Profit means Net profit as per audited annual accounts for the year minus Earning from exceptional items) plus an 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 subject to a maximum of 20% of total bonusable salary to be distributed as annual bonus to all eligible employees of different locations of the Company.
Bonus payable includes additional allocation of 15.88 Crore
As per Tata Workers Union agreement, employees were getting Rs 298.82 crore as per the existing formula. Later, a meeting of T V Narendran and Sanjeev Choudhary was held. Union officials urged MD to increase the bonus amount.
Further, in view of assurance of full cooperation from the Union that the employees will put in full efforts to meet the challenges faced by the Company in coming years towards productivity improvements and addressing employee cost, Management agreed to add an additional amount of Rs 15.88 Crores. Hence, the total amount available for disbursement as annual bonus to applicable Division/Units of the Company is increased to Rs. 314.70 Crores.
The total amount thus available for disbursement as annual bonus as per the above formula to applicable Divisions/units of the Company for the accounting year 2022-23 is Rs 314.70 Cr which will be distributed amongst 23445 eligible employees companywide.
