The company announced an annual bonus of 17.89 percent for the year 2023-24
Tata Steel and Tata Workers Union’ sign agreement
11,654 Jamshedpur employees to get Rs 168.64 crore
Tata Steel employee to get minimum bonus of Rs 38,203 maximum Rs 4,09,462
Amount to be credited to bank accounts by September 13
Jamshedpur, Sep 9: The Tata Steel management and Tata Workers Union signed a Memorandum of Settlement on Monday, September 9, 2024 for payment of Annual Bonus for the accounting year 2023-24.
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 17.89 percent for the year 2023-24, informed Sanjeev K Choudhary alias Tunnu Choudhary, President, Tata Workers’ Union
Addressing a press meet at the Union office on Monday Choudhary said, “the total amount thus available for disbursement as annual bonus for the accounting year 2023-24 is Rs 303.13 crore.
The minimum and maximum annual bonus payable for 2023-24 will be Rs 38,203 and Rs 4,09,462 respectively.”
According to Union officials the bonus amount will be credited to employees’ bank account by 13 September, 2024.
Total number of employees to whom the bonus will be paid in Jamshedpur including Tubes is 11,654 while total of 27,454 employees of the company from all locations will be benefitted.
Of the Rs 303.13 crore bonus amount, Jamshedpur and Tube Division employee will get Rs 168.64 crore in comparison to Rs 186.51 crore they received last year.
Total bonusable amount for the financial year 2023-24 is Rs 1694.15 crore in comparison to Rs 1573.51 crore in the previous year.
Average bonus amount for Jamshedpur and Tubes Divison comes up at Rs 1,44,706.
According to union officials, the maximum bonus at actual attendance for Old Series is Rs 4,09,462.
Maximum bonus at actual attendance for NS Series is Rs 1,13,515 while minimum bonus at full attendance for NS Series is Rs 38,203.
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), Chanakya Chaudhary, Vice President, Corporate Services, 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 and Rajesh Prasad, Dy. Labour Commissioner, Jamshedpur.
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 India operations including the net profit from the companies merged with Tata Steel during the FY 2023-24, excluding profit from Tata Steel Meramandali (i.e. 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.
Employees received Rs 314.70 Crore previous year
Last year, Tata Steel employees received a total bonus payout of Rs 314.70 crore, with Rs 298.82 crore initially offered by the management under the bonus head. Following negotiations and demands by the Tata Workers’ Union, an additional Rs 15.88 crore was granted, bringing the total bonus distribution to Rs 314.70 crore. This bonus benefitted a total of 11,676 employees, who received an average payout of Rs 1,59,738.
In 2022-23, employees in the NS grade received a minimum bonus of Rs 42,561, with a maximum of Rs 1,21,718. Meanwhile, employees in the Old Series grade received a maximum bonus of Rs 4,61,019. For the past two years, Tata Steel employees have consistently received 20 percent bonuses along with additional benefits.
