Tata Steel to pay Rs 154.72 crore as annual bonus

Tata Steel, the private steel major, said it will pay Rs 154.72 crore to its eligible employees as annual bonus for 2014-15.

A Memorandum of Settlement was signed in Jamshedpur on Wednesday between Tata Steel and the Tata Workers' Union.

"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", Tata Steel said in a statement.

"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", it added.

"However, respecting our old tradition, the company is going to pay bonus to all employees in the unionised category", the statement said.