Tata Steel to pay minimum bonus of Rs 18,000 to each eligible worker

The minimum bonus for an eligibleTata SteelBSE 0.05 % employee will work out to around Rs 18,000, according to a press release by the company.

While the maximum bonus payable for such employees will be Rs 1,41,343, the minimum will be Rs 17,978, it said.

The steel major today announced about Rs 182.47 crore as annual bonus for the year 2011-12 against Rs 171.70 crore paid in the previous year.

According to a memorandum of settlement signed between the management of the steel company and the Tata Workers Union (TWU), the total pay out for 30,270 eligible employees of all applicable division/units of the company would be Rs 182.47 crore approximately as against Rs 171.70 crore paid last year.

Out of this, approximately Rs 105.02 crore would be paid as annual bonus payable to 16,547 employees at the divisions at Jamshedpur, including tubes division, the release said.

Since the majority of the employees of the company were drawing salary and wages higher than the limit laid down in the payment of Bonus Act,1965, they were not eligible for bonus under it, the release added.

However, the company agreed to pay bonus to all employees in the unionised category to respect the tradition, it stated.

Tata Steel Managing Director HM Nerurkar and other senior executives signed the agreement on behalf of the management and President of TWU Premanand Singh and other office-bearers signed for the union in the presence of the deputy labour commissioner here.

Source: Times of India