An Indian multinational steel-making company, Tata Steel will pay Rs 314.70 crore as an annual bonus to employees for the year 2022-2023.
The company announced an annual bonus of 20 percent for the year 2022-23. Tata Steel employees get a minimum bonus of Rs 42,561, a maximum Rs 4,61,019 which will be credited to employees’ bank accounts by 11 September 2023.
T V Narendran, CEO & Managing Director, Tata Steel and Sanjeev Choudhary, President, Workers Union have signed a Memorandum of Settlement on Monday, September 4, 2023 for payment of Annual Bonus for the accounting year 2022-23.
The total number of employees to whom the bonus will be paid in Jamshedpur including Tubes is 11,676 while a total of 23,445 employees of the company from all locations will benefit.
What are Annual Bonus?
The Payment of Bonus Act, of 1965 aims to regulate the amount of bonus to be paid to the persons employed in establishments based on its profit and productivity. The act applies to the whole of India for all establishments which had twenty or more persons employed on any day during the year.
Annual Bonus refers to any compensation paid in addition to the base annual salary associated with services conducted during any calendar year which is payable to an employee under an employer’s yearly bonus and cash incentive plans, where stock options are not included.
Tata Steel has signed a Memorandum of Settlement with Tata Workers’ Union (TWU). Moreover, the company is going to pay bonuses to all employees in the unionized category
However, Most IT services-providing companies have announced Nil/less salary increments or deferred salary hikes due to economic uncertainties.
LTIMindtree rolled out very poor increments for its employees, many have received a 0-2% hike even after months of delay.
Tech Mahindra deferred salary hikes for senior employees due to a huge drop in net profile in Q1FY24. Wipro has also announced a delay in its wage hike cycle for the fiscal year.
The technology company HCLTech has also deferred salary hikes for their employees by one quarter.
However, TCS has rolled out an annual salary increase with effect from April 1st. The company has given a 12-15% raise for exceptional performers in the latest annual compensation review and also commenced the promotions cycle.