Tata Steel has announced a total bonus payout of ₹303.13 crore for its employees for the financial year 2024–25, following the signing of a memorandum of settlement with the Tata Workers’ Union (TWU) in Jamshedpur.
The agreement was formalized on August 28, 2025, in the presence of senior company officials and representatives from the Jharkhand government’s labour department.
The bonus will be distributed among eligible employees across various divisions and units of Tata Steel, including its Jamshedpur operations.
The announcement comes as a reaffirmation of the company’s longstanding tradition of rewarding its workforce, even though most employees fall outside the statutory bonus eligibility under the Payment of Bonus (Amendment) Act, 2015.
Tata Steel Jamshedpur Division to Receive Half of Total Payout
Out of the total ₹303.13 crore bonus, ₹152.44 crore has been earmarked for the Jamshedpur division.
This amount will benefit 11,446 employees, including those in the tubes unit.
The remaining amount will be distributed among employees in other eligible divisions and units of the company.
The bonus amount varies based on attendance and job category.
Employees with full attendance will receive a minimum bonus of ₹39,004, while those with higher attendance and seniority may receive up to ₹3,92,213.
Bonus Beyond Statutory Limits: A Tradition Upheld
Tata Steel clarified that the majority of its employees earn wages above the threshold defined in the Payment of Bonus Act, making them ineligible for statutory bonuses.
However, the company has chosen to uphold its legacy of voluntary bonus payments to unionised staff.
In a statement, Tata Steel said, “Respecting our old traditions, the company is going to pay a bonus to all employees in the unionised category,” reinforcing its commitment to employee welfare and industrial harmony.
Tata Steel Senior Leadership and Government Officials Present
The memorandum of settlement was signed by Tata Steel CEO and Managing Director T.V. Narendran, Chief People Officer Atrayee Sanyal, and other senior executives on behalf of the management.
Representing the union were TWU President Sanjeev Kumar Choudhary, General Secretary Satish Kumar Singh, and other office bearers.
Arvind Kumar, Deputy Labour Commissioner of Jamshedpur and Conciliation Officer, attended the signing ceremony.
His presence highlighted the formal and collaborative nature of the agreement.
Employee Sentiment and Broader Impact
Employees and union representatives have welcomed the announcement. They see the bonus as a recognition of their contribution to Tata Steel’s overall performance.
The announcement comes at a time when other Tata Group companies, including TCS, are undergoing workforce rationalization.
This makes the bonus gesture especially meaningful for Tata Steel’s employees.
The bonus payout is expected to boost morale and reinforce Tata Steel’s reputation as an employer that values long-term relationships with its employees.
It may also set a benchmark for other industrial employers in the region.
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