OREANDA-NEWS. September 26, 2011. The memorandum of settlement was signed by HM Nerurkar, managing director, Tata Steel; AM Misra, vice president (coke, sinter and iron & industrial relations), and other senior officials of the company on behalf of the company’s management and Raghunath Pandey, president, Tata Workers’ Union, and the other office bearers, on behalf of the union, in the presence of Akhilesh Kumar, conciliation officer and deputy labour commissioner, Jamshedpur.

The annual bonus for the accounting year 2010-2011 is 18.50 per cent of salary / wages (Basic Pay + Dearness Allowance) paid for the year 2010-11 taking into account the amount of salary / wages (Basic + DA) of arrears of wage revision paid / payable, as the case may be, for FY2010-11.

Since all employees of Tata Steel 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 its old traditions, the company is going to pay bonus to all employees in the unionised category.

The total payout on account of annual bonus for the year 2010-11 will be Rs171 crore approximately. Nearly 30,155 employees would be paid annual bonus.

In a communique signed by Mr Nerurkar and Mr Pandey, all the employees are being informed about the payment of annual bonus.