A company press release said, "Since all employees of the Steel Company are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, no employee of the company is 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".
A Memorandum of Settlement was signed between the Steel Company and the Tata Workers Union here in this regard for the accounting year 2010-2011, the release said.
The Memorandum of Settlement was signed by H M Nerurkar, Managing Director, Tata Steel and other senior officials on behalf of the Company's Management and Raghunath Pandey, President, Tata Workers Union and other office bearers, on behalf of the Union, in presence of Akhilesh Kumar, Conciliation Officer and Deputy Labour Commissioner, Jamshedpur, the release said.
While the maximum bonus will Rs 1,30,463, the minimum will be Rs 26,610, Pandey told PTI. The total payout on account of annual bonus for the year 2010-2011 will be Rs 171 crore approximately against Rs 143 crore last year, he said .