Tata Steel announces 20% bonus for employees

[rahul_parab2006]

Tata Steel announces 20% bonus for employees

NEW DELHI: Tata Steel on Friday said it will pay its employees 20 per cent of their salary as bonus for the year 2007-2008 on account of better performance and centenary year of the company.

The steel major today signed an agreement, related to bonus payment, with its employees' union extending the August 2002, MoU with them for another year, a company statement said.

According to the pact, annual bonus for the accounting year 2007-08 was to be calculated on the basis of 50 per cent on production and profitability each. Based on this calculation, the annual bonus works out to be 9.26 per cent on production and 10 per cent on profitability, thus making a total of 19.26 per cent of salary or wages paid for the year.

However, Tata Steel has agreed to keep the request of employees union and round-off the bonus percentage for the accounting year 2007-08.

"..in consideration of our centenary year and satisfactory performance during 2007-08 and also in order to keep up the morale of the employees, it (Tata Steel) has agreed to round-off the Bonus percentage," it said.

At 20 per cent bonus, the minimum and the maximum annual bonus payable would be Rs 9,154 and Rs 75,372 respectively. The total payout for the year stands at Rs 113.8 crore, of which Rs 64 crore would be distributed at the Jamshedpur unit alone.

"Most of the employees of the company are drawing salary or wages higher than the limit laid down such employees are
not eligible for bonus. However, respecting our old traditions, the company is going to pay bonus to all employees in the unionised category" the statement added.

Source : DNA India