Tamil Nadu Chief Minister Vijay has announced bonus and ex-gratia payments of up to 20 per cent for eligible Group C and D employees of state public sector undertakings for 2025-26, benefiting 2,60,497 workers at a total cost of Rs 367.20 crore (yaani about Rs 3.67 billion), IANS reported on Tuesday, citing an official release.

Source: IANS

The announcement, made ahead of Deepavali, recognises the contribution of workers and employees to the state's economic development and the functioning of public sector enterprises, according to the release. Eligible permanent workers will receive between Rs 8,400 and Rs 16,800.

Employees in profit-making public sector undertakings will receive an 8.33 per cent bonus and 11.67 per cent ex-gratia, taking the combined payment to 20 per cent, subject to the allocable surplus available with the respective enterprises. Eligible Group C and D employees of the Tamil Nadu Power Distribution Corporation, state transport corporations, Tamil Nadu Civil Supplies Corporation and Tamil Nadu Cooperative Milk Producers' Federation will also receive a combined payment of 20 per cent.

For public sector undertakings without an allocable surplus, the government has announced a minimum bonus of 8.33 per cent and an ex-gratia payment of 1.67 per cent, bringing the total benefit to 10 per cent. Eligible employees of the Tamil Nadu Housing Board and Chennai Metropolitan Water Supply and Sewerage Board will receive the same 10 per cent package, while eligible Group C and D employees of the Tamil Nadu Water Supply and Drainage Board will receive an 8.33 per cent bonus.

Temporary workers employed by the Tamil Nadu Civil Supplies Corporation will receive a separate ex-gratia payment of Rs 3,000 each. The release referred to a monthly salary ceiling of Rs 21,000 for bonus eligibility and a monthly wage ceiling of Rs 7,000 for calculating the payment, and said the government had relaxed the prescribed limits for extending the announced benefits. Separate orders will be issued for employees working in various cooperative societies and institutions, the government said.