Company to pay Rs 20,000 as goodwill amount to each employee
12213 Jamshedpur employees to get Rs 188.64 crore
Tata Steel employee to get minimum bonus of Rs 41,448, maximum Rs 4,58,411
Bonus amount to be credited to employees bank account on Sep 15
Jamshedpur, Sep 9:The Tata Steel management and Tata Workers Union signed a Memorandum of Settlement on Friday, September 9, 2022 for payment of Annual Bonus for the accounting year 2021-22 and subsequent accounting years up to accounting year 2023-24.
Thememorandumwas signed by T V Narendran, CEO & Managing Director, Tata Steel and Sanjeev Choudhary, President, Tata Workers` Union.
The company announced an annual bonus of 20 percent for the year 2021-22 compared to 16% during the previous year.
The total amount thus available for disbursem*nt as annual bonus to applicable Divisions or units of the Companyfor the accounting year 2021-22 is Rs 317.51 crore.
In view of superior company performance during financial year 2021-22 and efforts put in by all the employees during the COVID period, on request of the union a goodwill amount of Rs 20000 per person will also be paid over and above the annual bonus amount arrived above.
The bonus amount has been increased by around 47.23 crore as comparedto last year.
Last year, Rs 270.28 crores bonus was disbursed by Tata Steel for its eligible employees for the year 2020-21.
This is the first time the bonus amount has exceeded Rs 300 crore.
The bonus formula will beapplicable till 2024.
The minimum and maximum annual bonus payable for 2021-22 will be Rs 41,448 + Rs 20,000 and Rs 4,58,411+ Rs 20,000 respectively.
According to Union officials the bonus amount will be credited to employees’ bank account by 15 September, 2022.
Total number of employees to whom the bonus will be paid in Jamshedpur including Tubes is 12,213 while total of 23,710 employees of the company from all locations will be benefitted.
Of the Rs 317.51 crore bonus amount, Jamshedpur and Tube Division employee will getRs 188.64 crore in comparison toRs 158.31 crore they received last year.
Total bonusable amount for the financial year 2021-22 is Rs 1587.55 in comparison to Rs1631.62 crore in the previous year.
Average bonus amount for Jamshedpur and Tubes Divison comes up at Rs 1,54,457 +Rs 20,000.
According to union officials, the maximum bonus at actual attendance for Old Series is Rs 4,58,411+ Rs 20,000.
Maximum bonus at actual attendance for NS Series is Rs 1,16,527 + Rs 20,000 while minimum bonus at full attendance for NS Series is Rs 41,448 + Rs 20,000.
Since majority of employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus (Amendment) Act, 2015, they are not eligible for bonus under the Act. However, respecting old traditions, the Company is going to pay bonus to all employees in the unionized category.
Also present during the signing of the bonus agreement were Atrayee Sanyal, Vice President (HRM) and other Sr. Executives on management’s behalf and Shailesh Kumar Singh, Dy. President, Tata Workers’ Union, Satish Kumar Singh, General Secretary, Tata Workers’ Union and the other office bearers signed on Union’s behalf in presence of Rajesh Prasad, Dy. Labour Commissioner, Jamshedpur and Conciliation Officer, Govt. of Jharkhand.
As an expert in the field of labor relations, employee compensation, and corporate negotiations, I can provide an in-depth analysis of the article you've shared regarding Tata Steel's annual bonus announcement. My extensive knowledge in these areas allows me to break down the key concepts and shed light on their implications.
Firstly, the Memorandum of Settlement signed between Tata Steel management and Tata Workers Union outlines the terms for the payment of the annual bonus for the accounting years 2021-22 to 2023-24. This agreement is a crucial aspect of labor relations, demonstrating the collaboration between the company and its workforce.
The annual bonus for the year 2021-22 is set at 20%, up from the previous year's 16%, reflecting the company's recognition of superior performance during the financial year 2021-22. This increase resulted in a total disbursem*nt of Rs 317.51 crore, a significant rise from the previous year's Rs 270.28 crore.
Additionally, as a gesture of goodwill and in acknowledgment of employees' efforts during the challenging COVID-19 period, the company has decided to pay an additional amount of Rs 20,000 per person. This goodwill amount, totaling Rs 47.23 crore, is a commendable initiative to appreciate and reward the employees for their dedication.
The article specifies the minimum and maximum annual bonus payable, ranging from Rs 41,448 + Rs 20,000 to Rs 4,58,411 + Rs 20,000. This provides transparency in the bonus structure and ensures that employees are aware of the potential bonus they may receive.
The bonus is scheduled to be credited to employees' bank accounts by September 15, 2022, showcasing the company's commitment to timely and transparent compensation practices.
It's noteworthy that the total number of employees in Jamshedpur, including Tubes, is 12,213, and a total of 23,710 employees from all locations will benefit from the bonus disbursem*nt. The distribution of the bonus amount is also detailed, with Jamshedpur and Tube Division employees receiving Rs 188.64 crore.
The article mentions that the bonus formula will be applicable until 2024, providing a sense of stability and predictability for the employees in terms of future bonus expectations.
In conclusion, this annual bonus announcement reflects a harmonious relationship between Tata Steel and its workforce, acknowledging and rewarding their contributions during the specified accounting years. The transparent bonus structure, the additional goodwill amount, and the commitment to traditional practices contribute to a positive work environment and employee satisfaction.
