Tata Steel has signed a memorandum of settlement with the Tata Workers’ Union for annual bonus for 2007-08, which will translate to a payout of Rs 113.8 crore.
The annual bonus would be calculated on the basis of 50 per cent on production and 50 per cent on profitability and works out to 19.26 per cent of salary/wages paid for 2007-08.
However, in consideration of the company’s centenary year, the bonus percentage has been rounded off to 20 per cent salary/wages (basis and dearness allowance) while India’s inflation in 2007-08 averaged at 4.5 per cent.
At 20 per cent, the minimum and maximum annual bonus payable would be Rs 9,154 and Rs 75,372, respectively.
The total payout at Jamshedpur (including tubes) would be Rs 64 crore and across Tata Steel’s operations Rs 113.8 crore.
The settlement which was valid for five years has been extended further for one year.
A Tata Steel spokesperson said that the settlement is signed every year under the broad outline of the five year agreement.
Last year too the bonus percentage was 20 per cent.
The settlement was signed by B Muthuraman, managing director, Tata Steel, and Raghunath Pandey, president, TWU and senior executives of the company and union office bearers, in the presence of R P Singh, conciliation officer, deputy labour commissioner, Jamshedpur.
