Tata Steel signs ₹315-crore bonus pact; employees get first-ever ₹10-crore profitability boost
PINAKI MAJUMDAR Jamshedpur, September 3: Tata Steel management and the Tata Workers’ Union on Thursday signed the annual bonus agreement for the…
PINAKI MAJUMDAR
Jamshedpur, September 3: Tata Steel management and the Tata Workers’ Union on Thursday signed the annual bonus agreement for the financial year 2025-26, providing for a total payout of ₹315 crore to 25,603 eligible employees.
The settlement, reached under the company’s existing bonus formula, takes into account net profit, profitability, productivity, production and safety performance.
The agreement was signed around 10 am, following which the three top office-bearers of the Tata Workers’ Union briefed the media at the union premises on its key provisions and the benefits for employees.
₹10 crore added to profitability component
The biggest highlight of this year’s settlement is the first-ever additional allocation of ₹10 crore under the profitability component.
According to union leaders, the ceiling under this component had so far been fixed at ₹90 crore. However, with the profitability figure reaching ₹674 crore, the management agreed to increase the amount payable under the component to ₹100 crore.
Union leaders termed the enhancement a significant achievement, saying it reflected the management’s recognition of the workforce’s contribution to the company’s performance.
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Net profit contributes ₹165.53 crore
Under the established bonus formula, 1.5 per cent of Tata Steel’s adjusted net profit from its India operations, excluding extraordinary items, was taken into account for the current financial year.
The company recorded an adjusted net profit of ₹11,035.24 crore, resulting in a bonus component of ₹165.53 crore under this head.
Additional amounts were determined on the basis of production, profitability, productivity and safety performance.
The key parameters considered for the settlement included 16.11 million tonnes of saleable steel, 17.26 million tonnes of crude steel production, profitability of ₹6,852 per tonne and productivity of 674.2 tonnes per employee per year.
Taking all the parameters into account, the total bonus worked out to ₹314.53 crore, which was rounded off to ₹315 crore.
Jamshedpur division gets ₹163.85 crore
The Jamshedpur division, including Tubes, has been allocated ₹163.85 crore from the overall bonus pool.
Around 11,021 employees of the division will benefit from the settlement.
The average bonus for employees in the Jamshedpur unit is estimated at ₹1,48,675.
The maximum bonus for employees under the Old Series has been fixed at ₹4,52,512, while the maximum for New Series employees stands at ₹1,28,448.
For New Series employees, the minimum bonus for those maintaining full attendance is ₹39,016.
Union calls settlement a significant milestone
The Tata Workers’ Union leadership described the agreement as a significant milestone, with the enhancement of the profitability component from ₹90 crore to ₹100 crore emerging as the key highlight.
Union leaders said the improved bonus payout reflected both the company’s financial performance and the contribution of its employees.
They said the agreement would provide employees with a direct share in the company’s performance while reinforcing the importance of productivity, profitability and workplace safety in the annual bonus mechanism.
