Tata Steel declared the Annual Bonus for the accounting year 2012-2013 on Monday. HM Nerurkar, managing director, Tata Steel, and other senior executives signed on management’s behalf and Premanand Singh, president, Tata Workers’ Union, and the other office bearers signed on union’s behalf.
As per the Memorandum of Settlement, 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 Rs180.5 crore.
Out of this, dor Divisions at Jamshedpur including Tubes Division, an amount of Rs103.6 crore approximately will be distributed as annual bonus amongst 17,254 employees. The minimum and maximum annual bonus payable for 2012-13 will be Rs13,311 to Rs Rs1,43,653. Since majority of the employees of the Steel Company are drawing salaries / wages higher than the limit laid down in the Payment of Bonus Act, 1965, 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 unionised category.