A Memorandum of Settlement was signed between the Steel Company and the Tata Workers’ Union, today for Annual Bonus for the accounting year 2009-2010.

Based on the scheme, the Annual Bonus for the accounting year 2009-2010 comes to 17.5% of salary/wages (Basic + DA) paid for the year 2009-2010 taking into account the amount of salary/wages (Basic + Dearness Allowance) of arrears of wage revision paid/payable, as the case may be, for the accounting year 2009-10

An ex-gratia amount is being paid for the arrears of wages/ salary (Basic + Dearness Allowance) of wage revision during the period 01-01-2007 to 31-03-2009 at 8.33% of arrears of wages/ salary (Basic + Dearness Allowance) paid/payable for the aforementioned period.

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.

At 17.5% percent bonus for 2009-10 and the maximum and minimum annual bonus payable for 2009-10 on revised salary post wage revision as per Memorandum of Settlement dated 7th September, 2010, without bonus on arrears for the period 1.1.07 to 31.3.2009 will be Rs 24157/- and Rs 105705/- respectively.

The bonus on arrears of salary/wages arising out of recently signed Memorandum of Settlement dated 7th September, 2010, will be calculated separately and paid at a later date.

The total payout on account of annual bonus for the year 2009-2010 will be Rs 155 Crores approximately. Nearly 30335 employees would be paid annual bonus.

In a communique signed by the Managing Director and President, Tata Workers’ Union, all the employees are being informed about the payment of annual bonus.