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 (PSUs) for 2025-26, benefiting 2,60,497 workers at a total government outlay of ₹367.20 crore. The announcement, timed ahead of the Deepavali festival, recognises workers' contributions to Tamil Nadu's economic development and the functioning of public enterprises.

Who Gets What

Eligible permanent workers will receive payments ranging between ₹8,400 and ₹16,800, according to an official release. Employees in profit-making PSUs will receive an 8.33 per cent statutory bonus and an 11.67 per cent ex-gratia, taking the combined payout to 20 per cent, subject to the allocable surplus available with the respective enterprise.

Eligible Group C and D employees of the Tamil Nadu Power Distribution Corporation, state transport corporations, Tamil Nadu Civil Supplies Corporation, and the Tamil Nadu Cooperative Milk Producers' Federation will also receive the full 20 per cent combined payment.

Reduced Package for Loss-Making PSUs

For public sector undertakings that do not carry an allocable surplus, the government has announced a minimum statutory bonus of 8.33 per cent and an ex-gratia of 1.67 per cent, bringing the total benefit to 10 per cent. Eligible employees of the Tamil Nadu Housing Board and the Chennai Metropolitan Water Supply and Sewerage Board will receive this 10 per cent package. Eligible Group C and D employees of the Tamil Nadu Water Supply and Drainage Board will receive an 8.33 per cent statutory bonus.

Temporary workers employed by the Tamil Nadu Civil Supplies Corporation will receive a separate ex-gratia payment of ₹3,000 each.

Eligibility Ceilings and Relaxations

The monthly salary ceiling for bonus eligibility is set at ₹21,000, while the monthly wage ceiling for calculating the actual payment amount is ₹7,000. The government has relaxed prescribed limits to extend these benefits, and separate orders will be issued for employees working in various cooperative societies and institutions.

Context and Industrial Backdrop

The official release highlighted Tamil Nadu's industrial strengths, crediting workers' dedication, skilled manpower, and government policies with sustaining growth and attracting domestic and foreign investments across sectors including manufacturing, automobiles, engineering, textiles, leather, pharmaceuticals, and information technology. This comes amid a broader state government effort to position Tamil Nadu as a preferred investment destination in southern India. Pre-festival bonus announcements of this scale have been a recurring practice in the state, underscoring the political as well as economic significance of PSU workforce welfare. The government stated that the payments are intended to help workers and their families celebrate the forthcoming Deepavali with greater ease.