About 16,500 employees of Tata Steel at Jamshedpur will get annual bonus ranging from Rs 21,486 to Rs 1,00,845, costing the company Rs 81 crore.
The company signed the bonus agreement for 2008-09 with workers' union today at Jamshedpur in presence of senior officials from the Labour Department, a Tata Steel release said here.
While most of the employees are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, and such employees are not eligible for bonus, the company said adding, "...Respecting our old traditions, we are going to pay bonus to all employees in the unionized category."
An ex-gratia amount is also being paid for the arrears at 8.33 per cent for a period from January 1, 2007, to March 31, 2008, the release said.