Tata Steel will pay Rs 130 crore to its eligible employees as annual bonus for 2015-16. Tata Steel and Tata Workers' Union have signed a memorandum of settlement for payment of annual bonus for 2015-2016. The Settlement was signed on 19th September, 2016.
As per the Memorandum of Settlement the annual bonus for the year 2015-2016 the total payout for 28,436 eligible employees of all applicable divisions/ Units of the Company on account of annual bonus for the year 2015-2016 will be Rs 130 Crore.
Out of this, for Divisions at Jamshedpur including Tubes Division, an amount of Rs 75.77 crores approximately will be distributed as annual bonus amongst 15575 employees. The minimum and maximum annual bonus payable for 2015-16 will be Rs 16800 and Rs 121365 respectively.
"Since majority of our employees of the Steel Company are drawing salary/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 our old traditions, the Company is going to pay bonus to all employees in the unionised category", the company said in the press release.
Shares of the Tata Steel were seen trading flat at Rs 361.70 on BSE at 11.44 am IST. It touched an intra-day high of Rs 364 and low of Rs 359 during trade.