There is good news for the 2,2871 employees of Tata Steel Jamshedpur. They will receive an increased bonus of 16 per cent this year, compared to 12 per cent in the last fiscal. A memorandum of understanding was signed to this effect between the management and the Tata Workers’ Union. For the past few years, the bonus payout is costing more than Rs 200 crore.
The minimum bonus payable at full attendance will be Rs 34,290 whereas the maximum bonus payable will be Rs 3,59,029. This brings cheer amidst the challenges of the pandemic. Very soon the bonuses will be deposited into the accounts of the employees.
The formula used for calculation of bonus is the same as has been used since 2017-18, that is, basis 1.5 per cent of net profit. In addition to net profit, the bonus was calculated based on the Company’s profitability and the workforce’s productivity, as was agreed upon by the management and union officials.
Tata Steel posted a net profit of Rs 13,707 crore in the last financial year against Rs 6,744 crore in the previous year, that is, an increase of over 100 per cent. Therefore, a total of about Rs 270.28 crore will be paid out as annual bonus for 2020-21.
The memorandum was signed by T V Narendran, CEO & managing director, Tata Steel and Sanjeev Choudhary, president, Tata Workers’ Union.