On September 4, 2023, the Tata Steel management and Tata Workers Union signed a Memorandum of Settlement for payment of Annual Bonus for the accounting year 2022-23.
Bonus For All Tata Steel Employees
The CEO & Managing Director, Tata Steel, T V Narendran, and Sanjeev Choudhary, President, Tata Workers’ Union signed this memorandum in which the company announced an annual bonus of 20 percent for the year 2022-23.
This way, the total amount which is available for disbursement as annual bonus to applicable Divisions or units of the Company for the accounting year 2022-23 stand at Rs 314.70 crore.
So, the minimum and maximum annual bonus payable for 2022-23 will be Rs 42,561 and Rs 4,61,019 respectively.
The bonus amount will be credited to employees’ bank accounts by 11 September, 2023, as per the information provided by Union officials.
This bonus will be paid to the employees in Jamshedpur whose headcount including Tubes is 11,676.
In total, 23,445 employees of the company from all locations will be benefitted.
From this Rs 314.70 crore bonus amount, Jamshedpur and Tube Division employees will get Rs 186.51 crore in comparison to Rs 188.64 crore they received last year.
This is because the total bonusable amount for the financial year 2022-23 is Rs 1573.51, a little bit lower in comparison to Rs 1587.55 crore in the previous year.
If we consider the averaging, the bonus amount for Jamshedpur and Tubes Division comes up at Rs 1,59,738.
The maximum bonus at actual attendance for the Old Series is Rs 4,61,019, the union officials said.
Similarly, the maximum bonus at actual attendance for NS Series is Rs 1,21,718 and minimum bonus at full attendance for NS Series is Rs 42,561.
Respecting Old Traditions
It is noteworthy here that the majority of employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus (Amendment) Act, 2015, hence they are not eligible for bonus under the Act.
But, respecting the old traditions, the Company is going to pay a bonus to all employees in the unionized category.
During the signing of the bonus agreement, the people present 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.
