Tata Steel has agreed to pay 20% bonus for FY06 to its 35,600 employees, who would be eligible to draw anywhere between Rs 8,818 and Rs 64,666 depending on their pay scale. A total of about Rs 100 crore would be paid as annual bonus.The memorandum of Settlement to this effect was signed by B Muthuraman, MD of Tata Steel for the company and Raghunath Pandey, president of Tata Workers Union (TWU) and the annual bonus would be calculated on the basis of 50% on production and 50% of profitability, Tata Steel said in a release here today.The bonus, based on this calculation, works out to be 9.26% on production and 10% on profitability - thus making it a total of 19.26% of salary/wages (basic and dearness allowance) paid for FY06.However, management of the steel company has taken into consideration the union's request as well as the satisfactory performance during the year and agreed to round off the bonus to 20%, the release said.In line with the old practice, the company would pay bonus to all employees in the unionised category even though they were drawing salary/wages higher than the limit laid down in the payment of the Bonus Act 1965, it said, adding that as per the Act, no employee of the company would have been eligible for bonus.