Jamshedpur: Tata Cummins has signed its bonus cum wage agreement with the union, with more than 700 employees set to receive their bonus before Durga Puja. The company has retained the maximum 20% bonus for the third consecutive year. The average payout has been fixed at Rs. 1,18,078, while the maximum and minimum bonus amounts stand at Rs. 1,44,193 and Rs. 79,334 respectively.
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The bonus was calculated through the company’s existing 20 point performance matrix, covering production, financial performance and quality. Tata Cummins achieved the full nine points for producing the targeted 1,89,985 engines. It secured eight points for recording a profit of Rs. 883 crore, while the quality parameter earned the full three points after BIS quality levels were kept below 550 PPM. The agreement also sets the direction for the next year’s Annual Operating Plan, including newer engines, improved assembly-line efficiency and better material management.
Bonus Formula Extended Till 2030
The management and union have also agreed to continue the existing bonus formula and performance matrix for the next four years, up to 2030. The bonus has risen from 16% in 2021 to 18.5% in 2022, 19.5% in 2023 and 20% in both 2024 and 2025, with the 20% level continuing in 2026. The latest agreement was signed by company officials including plant head Ajitesh Monga and HR head Deepesh Choulia, and union representatives led by president Rajesh Singh and general secretary Avinash Anupam.
Meanwhile, a separate issue has surfaced in the Tata Workers’ Union over the bunching benefit for New Series (NS) employees following grade revision. Around 20 committee members discussed whether employees affected by the change in their increment date would receive the financial benefit in their September salary, payable in October. The members warned that the matter could lead to a strong discussion at the next committee meeting if the benefit is not reflected in the upcoming salary.
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