Jamshedpur, September 06, 2026: Tata Cummins employees are heading into this year’s bonus negotiations with expectations of another 20% payout, after the company reportedly exceeded its production target for financial year 2025-26.
If the remaining parameters under the existing bonus formula also qualify, employees could receive the maximum bonus for the third consecutive year. However, the final percentage will be decided only after discussions between the company management and the union.
Production target crossed
The bonus calculation is based on a formula agreed upon in 2022 by the then union president Dipendu Chakraborty and his team.
The formula carries a total of 20 points, divided across three performance indicators:
- Production: 9 points
- Profit: 8 points
- BIS quality: 3 points
For FY 2025-26, the targets agreed under the previous bonus settlement included production of 1,52,386 engines, profit of Rs 603 crore and a BIS quality level of 550 PPM.
According to union sources, the company has already crossed the production target. This has strengthened expectations among employees that the maximum 20% bonus could be achieved.
The final calculation, however, will depend on the other parameters prescribed under the agreement.
Last year 773 employees shared Rs 9.03 crore
The bonus agreement will be closely watched by Tata Cummins employees, particularly after last year’s payout.
In the previous year, 773 employees received a combined bonus of Rs 9.03 crore. The maximum individual payout was Rs 1,41,537, while the minimum stood at Rs 74,968. The average bonus was Rs 1,17,081.
The figures have added to expectations around this year’s settlement, although the final amount will depend on the agreed calculation.
Union committee meeting expected this week
The union is expected to hold a committee meeting this week to discuss the bonus issue.
Committee members will review the performance parameters and the likely bonus calculation before negotiations with management.
Only after the management-union discussions will the final bonus percentage, individual payout and payment schedule become clear.
