Chennai: Tamil Nadu Chief Minister Joseph Vijay has announced that workers and employees in C and D category posts working in government public sector undertakings will be given bonus pay and ex gratia payment of up to 20 percent.
In view of the Deepavali festival, the Tamil Nadu government has issued the much-anticipated announcement on bonus for government employees. Following the bonus announcement made a short while ago in Puducherry, the Tamil Nadu government has now made this announcement.
It has also been stated in that announcement that government employees will be given an 8.33 percent bonus and an 11.67 percent ex gratia payment.
In the bonus announcement issued by the Tamil Nadu government, Chief Minister Joseph Vijay has announced that workers and employees in C and D categories working in all state public sector undertakings will be given up to 20 percent ex gratia and bonus.
The tireless hard work of workers, their dedication, a skilled workforce, and the government’s forward-looking policies play a vital role in the state’s industrial growth and in attracting domestic and foreign investment. Tamil Nadu is leading and progressing in various sectors, including manufacturing, automobiles, engineering, textiles, leather goods, pharmaceuticals, and information technology. Recognizing the hard work and dedication of workers and employees, who make significant contributions to Tamil Nadu’s economic growth and the functioning of public sector enterprises, and to encourage them, Chief Minister Joseph Vijay has ordered the payment of bonus and ex gratia for the year 2025–26.
As per the Wage Code, 2019 (formerly the amended Bonus Act, 2015), the salary ceiling for eligibility to receive bonus is specified as Rs. 21,000/-, and accordingly, the monthly salary ceiling for calculating bonus is specified as Rs. 7,000/-.
Relaxing the above ceiling, bonus and ex gratia for the year 2025-26 will be provided as follows to workers and employees working in all ‘C’ and ‘D’ category public sector undertakings:
1. Employees and workers in ‘C’ and ‘D’ categories working in public sector undertakings that have earned profits will be paid bonus and ex gratia up to a total of 20 percent, comprising 8.33 percent bonus and 11.67 percent ex gratia, taking into account the distributable surplus of the respective undertakings.
2. Eligible ‘C’ and ‘D’ category workers and employees working in public sector undertakings such as the Tamil Nadu Electricity Distribution Corporation, Tamil Nadu State Transport Corporations, Tamil Nadu Civil Supplies Corporation, and the Tamil Nadu Cooperative Milk Producers’ Federation will be granted a total of 20 percent ex gratia and compassionate allowance, comprising 8.33 percent ex gratia and 11.67 percent compassionate allowance.
3. Workers and employees in Categories C and D working in public sector undertakings that do not have distributable surplus will be paid a total of 10 percent as bonus and ex gratia, comprising 8.33 percent minimum bonus and 1.67 percent ex gratia.
4. Eligible ‘C’ and ‘D’ category employees working in the Tamil Nadu Housing Board and the Chennai Metropolitan Water Supply and Sewerage Board will be paid 8.33 percent bonus and 1.67 percent ex gratia.
5. Eligible ‘C’ and ‘D’ category employees working in the Tamil Nadu Water Supply and Drainage Board will be paid 8.33 percent bonus.
6. Workers employed on a temporary basis in the Tamil Nadu Civil Supplies Corporation will be paid Rs. 3,000/- as an ex gratia amount. As a result, permanent workers eligible to receive bonus will get a minimum of Rs. 8,400/- and a maximum of Rs. 16,800/-. In total, 2,60,497 workers employed in the public sector undertakings of the Tamil Nadu government will be paid Rs. 367 crore and 20 lakh as bonus and ex gratia. In addition, orders for employees working in various cooperative societies and institutions will be issued separately.
It has been stated that this move by the government will enable employees and workers working in public sector enterprises to perform with greater motivation and celebrate the upcoming Diwali festival with joy.
