Tata Steel has announced a 16.68% bonus for its employees for 2025, amounting to Rs. 303.12 crores. The payout will be transferred directly into bank accounts on 6th September. The decision was formalised after detailed discussions between Tata Steel management and the Tata Workers’ Union on 28th August 2025.
Formula Based Bonus Amount Decided
This year’s bonus was determined through a formula that included 1.5% (Rs. 138.83 crores) of the company’s net profit of Rs. 9,255.05 crores, 1.5% of the value of 14.83 million tonnes of steel production (Rs. 41.5 crores), Rs. 87.5 crore linked to productivity, and Rs. 5 crores towards safety. The total of Rs. 272.83 crores was further raised by an additional Rs. 30.30 crores following union requests, bringing the final figure to Rs. 303.12 crores. Of this, Rs. 152.44 crores will go to 11,446 employees of the Tubes Division in Jamshedpur.
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Net Profit Fall Impacted Bonus Amount
The bonus percentage is lower than the previous years, when Tata Steel employees typically received around 20%. The cut is attributed to a fall in net profit compared to last year, when the company reported Rs. 11,275.09 crores. The company’s leadership acknowledged the concern raised by the union and ensured that the payout remained close to past levels through additional allocation.
Employee Welcomed the Announcement
As per the agreement, employees under the old wage structure will receive up to Rs. 3,92,213, while those in the ‘S grade’ category will get a maximum of Rs. 1,10,547 and a minimum of Rs. 39,004. The announcement, though slightly below past percentages, has been welcomed by employees as a fair settlement in the current business environment.
Also Read: Locals Protested at Tata Steel’s Noamundi Mines, Demanded 75% Jobs and CSR Facilities
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