Jamshedpur, Sep. 14: The Tata Steel management and Tata Workers’ Union signed a Memorandum of Settlement on September 14, 2020 for payment of Annual Bonus for the accounting year 2019-20 amidst the COVID-19 pandemic.
The memorandum was signed by T V Narendran, CEO & Managing Director, Tata Steel and R Ravi Prasad, President, Tata Workers` Union.
Despite a difficult year due to COVID-19, Tata Steel honoured its 3-year commitment to ensure complete bonus payment to employees. The Union and Management had mutually agreed to revise the existing annual bonus scheme and make it applicable for financial years 2017-18, 2018-19 and 2019-20 to pay annual bonus based on 1.5% percentage of Net Profit plus and amount arrived based on performance achievement on profitability, productivity and safety parameters to be distributed as annual bonus to all eligible employees of different locations of the Company.
The total amount thus available for disbursement as annual bonus to applicable Divisions or units of the Company (including TSK) for the accounting year 2019-20 is Rs 235.54 crore.
Last year, Rs 239.61 crores bonus was disbursed by Tata Steel for its eligible employees for the year 2018-19.
Total number of employees to whom the bonus will be paid in Jamshedpur is 12, 807. This includes employees of Tubes Division and employees in T series & NS series of grades.
Third time in a row the bonus amount has exceeded Rs 200 crore. Last year 2018-19 the total bonus pay out was Rs 239.61 while in the year 2017-18 the amount came up 203.24 crore. The three year bonus formula was applicable this year also.
The bonus amount will take one month to get credited in employees’ bank account.
According to Tata Workers Union official, the bonus amount will be sent to employees account by October 14.