Udit Vani, Jamshedpur : Tata Steel employees will receive their annual bonus by the first week of September. Last year, the bonus percentage was 17.89%. This year, the bonus percentage will decrease, but the total bonus amount paid out to employees will increase. This change is mainly due to a reduced number of employees, with many having retired or taken advantage of the company’s Early Separation Scheme. With fewer employees to share the pool, the overall amount distributed as bonus goes up.
In 2024, Tata Steel employees received ₹303.13 crore as bonus—₹11.57 crore less than 2023’s ₹314.70 crore. For the financial year 2023–24, Tata Steel’s net profit was ₹4,807.4 crore, compared to ₹10,654 crore in 2022–23. However, after including an exceptional item of ₹6,467 crore last year, the net profit stood at ₹11,275 crore. Of this, 1.5% was ₹169.13 crore (versus ₹159.82 crore the previous year). So, the net profit amount used for bonus calculation in 2024 was ₹10 crore higher than the previous year.
Last year, the company’s profitability stood at ₹49 crore, and productivity fell by ₹10 crore (from ₹90 crore in 2023 to ₹80 crore in 2024). The safety (LTIFR) component for bonus was ₹5 crore in 2024, up from zero in 2023. The total bonus distributed last year was ₹303.13 crore, compared to ₹298.82 crore in 2023. After union negotiations, management agreed to increase the pool by ₹15.88 crore, bringing the final bonus payout to ₹314.70 crore, which was 20%. Despite the larger pool, the bonus percentage remained at 17.89%.
Breakdown of Bonus Components
Component 2024 Amount (₹crore) 2023 Amount (₹crore)
Net Profit 169.13 159.82
Profitability 49 49
Productivity 80 90
Safety (LTIFR) 5 0
Company Mergers Impact Bonus Structure
Last year, Tata Tinplate Company of India, Tata Steel Long Products, Tata Metaliks, and Tata Steel Mining were included in the bonus agreement for the first time. Employees from all mines and Tata Steel Kalinganagar were also covered as always. This year, the Wire Company bonus will also be issued together with Tata Steel.
Increase in Total Employees
After last year’s mergers, the number of permanent employees (on roll) rose to 27,454, up from 23,445 in 2023.
Jamshedpur Workers’ Bonus Declines
Last year, 11,654 Jamshedpur employees (including Tube Division) received ₹168.64 crore in bonus, down from ₹186.51 crore in 2023.
Maximum & Average Bonus Figures
The maximum bonus for “Old Grade” employees was ₹409,462 last year, down from ₹461,019 in 2023. The average bonus per employee was ₹144,706 last year (vs. ₹159,738 in 2023). For NS Grade employees, the maximum was ₹113,515 and the minimum ₹38,203.
Tata Steel Bonus History (Year-wise)
Year Total Bonus (₹crore) Bonus Percentage
2024 303.13 17.89
2023 314.70 20
2022 317.51 20 (plus ₹20,000 extra)
2021 270.28 16
2020 235.54 12.90
2019 239.61 15.86
2018 203.24 12.54
2017 164.00 11.27
2016 130.00 8.60
2015 154.72 8.53
Despite a drop in the bonus percentage this year at Tata Steel, the total bonus amount paid to employees will be higher due to a reduced workforce after retirements and early separation, along with recent company mergers.
