NEW DELHI: Tata SteelBSE 0.61 % today said 'respecting traditions of the company' it has made a provision for Rs 180.5 crore bonus payout to its about 31,000 employeesthis year too despite majority of them not legally eligible for it.
Tata Steel and Tata Workers' Union have signed a memorandum of settlement for payment of annual bonus for 2012-13. The memorandum of settlement was signed on Monday, September, 23, 2013.
"As per the memorandum of settlement, the total payout on account of annual bonus for some 30,824 eligible employees of all applicable divisions and units of the company for 2012-13 will be Rs 180.5 crore," Tata Steel said in a statement on Monday.
While H M Nerurkar, managing director, Tata Steel, and other senior executives signed on the management's behalf, Premanand Singh, president, Tata Workers' Union and the other office bearers signed on union's behalf.
Out of this, an amount of Rs 103.6 crore approximately will be distributed as annual bonus amongst 17,254 employees. For various divisions at Jamshedpur, including the Tubes Division, the minimum and maximum annual bonus payable for 2012-13 will be Rs 13,311 and Rs 1,43,653 respectively.
Incidentally, a majority of the employees of the company are drawing salaries / wages higher than the limit laid down in the Payment of Bonus Act, 1965, they are not eligible for bonus under the Act. However, respecting its old traditions, the company will pay bonus to all employees in the unionised category.
As per the Memorandum of Settlement, out of Rs 180.5 crore total bonus payout to employees, the company will distribute about Rs 103.6 crore among 17,254 employees of various divisions at Jamshedpur including Tubes Division.
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum.