Tata Steel employees will get around 20 per cent bonus this year ahead of Durga Puja. According to corporate communication officials, a bonus of Rs 317.51 crore will be given among around 23,710 employees which will be sent to their bank accounts by September 15.
What is Tata Bonus Agreement
TATA Bonus Update: Jamshedpur Tata employees will get Rs 212.71 crore on the balance amount this year and Rs 888.13 crore on annual salary and DA for last year 2019-20 together with Rs 1100.84 crore. By the way, if seen in Tata Steel, bonus is not available on the basis of percentage. The report has been prepared on the basis of the formula that such amount is paid. However, on the basis of percentage, it is calculated by the employees on the basis of their Basic and DA. According to this, on the basis of annual bonus amount 888.13 crore, 15.99 percent and on the basis of Rs 1100.84 crore, the total outstanding amount is 12.9 percent. However, the bonus amount for the entire Tata Steel is Rs 1825.37 crores, Including Rs 1100 crore for Jamshedpur and Tube Division.
R Ravi Prasad made old formula
TATA Latest Bonus News: In 2017 the bonus will not be available based on the parameters of this formula. The management has reduced the profit sharing of the employees by giving new life to this formula which was abolished two years ago. Not only this, this formula has been extended for the next three years, because if the new formula is made, then the management will have to pay more amount to the employees in lieu of bonus and this clause of the 2017 agreement will also be there. In which the condition of not giving more than 20 percent bonus amount was laid.
What the President of TWU Says
TWU: In this regard, Tata Workers Union President Sanjeev Kumar Choudhary says that this agreement was made to ensure that employees get maximum bonus when the company’s performance is poor and good. The company’s performance in the last financial year has been historic. Never make a formula when the market is booming. If the profit is less then the time should also be taken into account. But the opposing camp of the union says that when the company’s profits are low, the company does not give 20 percent bonus, but when the profits are high, its share should also be given to the employees.
The bonus agreement was signed between the management and the union at Tata Steel on Monday without any hustle and bustle this year. According to the agreement, Rs 235.54 crore will be distributed among the employees this year. In this, Rs 142.05 crore will be distributed among 12807 employees including Jamshedpur unit and tube division. This year, employees have also been given bonus on the arrears of grade revision.