Tata Steel Signs Deal to Pay Workers Bumper Bonus
The Telegraph reported that an agreement was signed between Tata Steel and the Intuc-affiliated Tata Workers’ Union, for payment of annual bonus to workers for the fiscal year 2020-2021. The total payout towards bonus for eligible employees of all applicable divisions & units of the company will be INR 270.28 crore. The average bonus amount this year is INR 1.26 lakh, with a maximum of INR 3.59 lakh for the old grade of employees. In the new grade, the maximum amount at actual attendance is INR 92,910. The minimum bonus at full attendance is INR 34,290.
Further, a memorandum of agreement also been signed between the steel major and The Indian National Metal Workers’ Federation and Rashtriya Colliery Mazdoor Sangh. Total payout on account of annual bonus at coal, mines and Ferro Alloy and Minerals Division works out to INR 78.04 crore.
Since a majority of Tata Steel employees draw 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 pays a bonus to all employees in the unionised category