The private steel major, Tata Steel said that it will pay Rs 154.72 crore as annual bonus for 2014-15 to its eligible employees.
On Wednesday, a Memorandum of Settlement was signed between Tata Workers’ Union and Tata Steel in Jamshedpur.
Tata Steel said in a statement that “Under the agreement, the total payout for 29,413 eligible employees of all applicable divisions/units of the company on account of annual bonus for 2014-2015 will be Rs 154.72 crore”.
“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”, said the statement.
“However, respecting our old tradition, the company is going to pay bonus to all employees in the unionised category”, it said.