Tata Steel announces Rs 180 cr bonus payout to employees

Sep 23 2013, 16:57 IST
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SummaryMinimum and maximum annual bonus payable to employees will be in the range of Rs 13,311 and Rs 1,43,653.

Tata Steel today said 'respecting traditions of the company' it has made a provision for Rs 180.5 crore bonus payout to its about 31,000 employees this year too despite majority of them not legally eligible for it.

"The total payout for 30,824 eligible employees of all applicable divisions/ units of the company on account of annual bonus for the year 2012-13 will be Rs 180.5 crore," the steel major said in a statement.

The minimum and maximum annual bonus payable to employees will be in the range of Rs 13,311 and Rs 1,43,653, it said.

Since majority of the employees of the steel company are drawing salaries or wages higher than the limit laid down in the Payment of Bonus Act, 1965, they are not eligible for bonus under the Act, it said.

"However, respecting our old traditions, the company is going to pay bonus to all employees in the unionised category," it added.

The company, for annual bonus payout, inked a Memorandum of Settlement for the accounting year 2012-13 with the Tata Workers' Union, which was signed by Managing Director, Tata Steel H M Nerurkar and Tata Workers' Union President Premanand Singh.

As per the Memorandum of Settlement, out of Rs 180.5 crore total bonus payout to employees, the company will distribute about Rs 103.6 crore among 17,254 employees of various divisions at Jamshedpur including Tubes Division.

Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum.

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