Traders Eye Festive Season Boost as Bonus Money Set to Flow
Key Points:
- Tata Steel Employees Celebrate ₹315 Crore Bonus Settlement
- Jamshedpur, Tubes Staff To Share ₹163.85 Crore Among 11,021
- Traders Expect Festive Season Boost From Bonus Spending
JAMSHEDPUR – Celebrations broke out among Tata Steel employees after the company and the Tata Workers Union signed a long-awaited annual bonus agreement for the 2025-26 financial year on Thursday, setting aside ₹315 crore for eligible employees.
The bonus agreement covers 25,603 eligible employees working across the company’s various units. However, the announcement was not only welcomed by workers.
Traders and businessmen across the city had also been waiting for the pact, since bonus payouts typically bring a fresh flow of money into local markets just as the festive season begins. Meanwhile, the city’s economy remains closely tied to spending by Tata Steel and its workforce.
Besides retail markets, investment markets in the city are also expected to see increased activity during the festive period as bonus funds are disbursed.
The bonus calculation retained the methodology used in previous years, based on net profit, profitability per tonne of saleable steel, productivity and safety performance. However, the profit of the Tata Steel Meramandali unit was not included in the calculation.
According to the company’s financial figures, Tata Steel’s adjusted net profit for the financial year stood at ₹11,035.24 crore. Saleable steel production was recorded at 1.611 crore tonnes, working out to a profit of ₹6,852 per tonne. In addition, crude steel production came to 1.726 crore tonnes, while productivity stood at 674.2 tonnes per employee per year. The safety metric, LTIFR, was recorded at 0.39.
Based on these performance indicators, the total bonus amount was fixed at ₹314.53 crore, which was rounded off to ₹315 crore.
Meanwhile, the Jamshedpur plant and Tubes division, together employing about 11,021 workers, have been allocated a combined ₹163.85 crore. Employees at these two units will receive an average bonus of ₹1,48,675.
Under the terms of the settlement, OS series employees will get a maximum of ₹4,52,512 based on actual attendance, while NS series employees will receive up to ₹1,28,448. On the other hand, NS series employees with full attendance have been assured a minimum bonus of ₹39,016.
“This settlement clears the way for employees to benefit from the company’s stronger performance this year,” a source close to the negotiations said.
Moreover, the agreement is being seen as a significant step in the interest of employees, coming months after a separate wage revision dispute had drawn criticism from within union ranks.
