Unfair Bonus Formula Sparks Workers’ Anger – RAKS Demands Production Related Pay

– DIGITAL BHILAI NEWS –
– 14 – SEPTEMBER – 2025 – (NEWS FROM ROURKELA STEEL PLANT)
Rourkela: Big Protest Planned on September 19
- Rourkela Steel Plant (RSP) is once again at the center of employee unrest.
- The Rourkela Steel Plant Employees Union (RAKS) has announced a major protest against the “illegal/unfair bonus formula” imposed by the Steel Authority of India Limited (SAIL) management.
- The demonstration will be held on September 19, 2025, at 5 PM at Birsa Chowk, Rourkela.
- According to RAKS leaders, the current bonus formula is unconstitutional, unfair, and deliberately keeps employees away from the real benefits of their hard work.
- Their demand is clear: scrap the flawed APLIS Scheme (2023–28) and implement genuine Production Related Pay, ensuring employees get their rightful share of SAIL’s profits.
- Lets see in detail what’s the matter? 👇🏻
Background: What is the Dispute About?
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In February 2023, SAIL management along with three recognized unions introduced a new bonus formula. {APLIS Scheme (2023–28)}
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This formula, was forced on SAIL employees without their consent.
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It is a controversial system: – On paper, it links worker payouts with production and profitability. In practice, it’s a mathematical trap designed to cap bonuses at meagre levels.
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How it works:
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Two performance parameters:
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P-1 Production (80%): Saleable Steel + Crude Steel targets.
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P-2 Profit Before Tax (20%): Last year’s profit compared with average of last 3 years.
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Base amount: Calculated from the average of last 3 years’ bonus/ex-gratia, multiplied by 1.04, then adjusted with changes in Labour Productivity (LP) and Dearness Allowance (DA).
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Extra incentive: If targets cross 100%, every 1% more gives 2% extra incentive.
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Special rule: If SAIL’s profit (PBT) goes above ₹10,000 crore, extra payment may be given after discussion in NJCS Core Group.
Terms & Conditions:
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- Employees must be on roll as of April 1 to qualify.
- Retiring staff get pro-rata payment.
- Trainees get 20% less than regular employees.
- If employees join a strike or stoppage, they lose the incentive.
- If someone resigns after payment, the amount will be recovered at final settlement.
Why Workers Call It Unfair?
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Low Base: The formula uses last 3 years’ bonuses (already low) as base, so payouts remain small.
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Profit Ignored: Profit factor has only 20% weight, while production target (set by management) gets 80%.
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Big Gap with Officers: SAIL officers get 5% of profit (PBT) as PRP, while workers get only around ₹28,000 (according to This unfair formula).
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Uncertainty: Extra payment is left to management discussions, not automatic.
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Right to Protest: Linking bonus to strike participation punishes workers for raising genuine demands.
Comparison with Other PSUs:
- Coal sector: ~₹93,500 bonus.
- NTPC / IOCL / ONGC / BPCL / Powergrid: True PRP system.
- NALCO / NMDC: Up to ₹1.5 lakh.
- SAIL workers: only ~₹28,000, sarcastically called “Churan Bonus.”
As a result, workers at RSP and all SAIL have been deprived of real Puja Bonus benefits for the past two years, even though SAIL has consistently achieved its production targets.
Bokaro Protest Strengthens the Movement
The discontent is not limited to Rourkela. Just two days ago, the Bokaro Steel Plant Anadhishashi Karmachari Sangh held a large protest on the same issue.
👉 Watch the Protest Video Here: Bokaro Workers Protest – YouTube Shorts
Watch: Bokaro Steel Plant workers protest against unfair bonus formula
Hundreds of workers joined, raising slogans for fair bonus and “Production Related Pay”. This shows that the anger is spreading across different SAIL plants, not just Rourkela.
Union’s Stand
RAKS Union President Sudhir Kumar Srivastava said:
“APLIS is only a formula to cheat workers. Officers get 5% of profit as PRP, but workers are given only a few thousand. We demand true PRP linked to production and profit, nothing less.”
The September 19 protest is expected to see big participation. If management does not act, unions warn that the movement may spread to Bhilai, Durgapur, and other SAIL plants, which could affect production nationwide.
Conclusion
The fight is not just about one bonus. It is about fairness and equal treatment. Workers believe they are the backbone of SAIL’s production, but they get the smallest share of profit.
Unless SAIL management agrees to scrap APLIS and introduce Production Related Pay (PRP), the protests may grow into a nationwide struggle in India’s steel sector.
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