Kolkata, Sep 15 (IANS): The Tata Steel management and Tata Workers' Union on Monday signed a memorandum of settlement for the payment of annual bonus to the employees for the accounting year 2019-20.

To honour its three-year commitment to ensure complete bonus payment to the employees even during the Covid-19 pandemic, the memorandum was signed by Tata Steel Chief Executive Officer (CEO) and Managing Director (MD) T.V. Narendran and Tata Workers' Union President R. Ravi Prasad.

The union and management had mutually agreed to revise the existing annual bonus scheme making it applicable for 2017-18, 2018-19 and 2019-20.

The agreement was made to pay an annual bonus based on 1.5 percent of net profit and the amount arrived based on performance achievement on profitability, productivity and safety parameters to be distributed as an annual bonus to all the eligible employees at different locations of the company.

The total amount available for disbursement as an annual bonus to applicable divisions or units of the company for the accounting year 2019-20 is Rs 235.54 crore, said a communication released by Tata Steel.

The total number of employees to whom the bonus will be paid in Jamshedpur is 12,807. This includes employees of tube division and those in T-series and NS-series of grades.