Tata Steel on Thursday announced that it will give an annual bonus of 18.5% of salary/wages of all its unionised employees for the year 2010-11.
Nearly 30,155 employees would be paid the annual bonus, the total payout on account of which will be approximately Rs 171 crore.
A company press release said, "Since all employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, no employee of the company is 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".
A Memorandum of Settlement was signed between the steel company and the Tata Workers' Union in Jamshedpur in this regard for the accounting year 2010-2011, the release said.
The Memorandum of Settlement was signed by Tata Steel managing director HM Nerurkar on behalf of the company management and Raghunath Pandey, the President of the Tata Workers' Union, on behalf of the union, in the presence of Akhilesh Kumar, Conciliation Officer and Deputy Labour Commissioner, Jamshedpur, the release said.
While the maximum bonus will Rs 1,30,463, the minimum will be Rs 26,610, Pandey said.
The total payout on account of annual bonuses for the year 2010-2011 will be approximately Rs 171 crore, as against Rs 143 crore last year, he said.