Tamil Nadu government announces bonuses for PSU employees

The Tamil Nadu government 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 the 2025-26 period. The initiative is expected to benefit 260,497 workers at a total cost of Rs 367.20 crore.

Under the plan, permanent workers in profit-making PSUs will receive a combined payment of 20 per cent, consisting of an 8.33 per cent bonus and an 11.67 per cent ex-gratia payment, depending on available surplus. For PSUs without an allocable surplus, the government has set a minimum total benefit of 10 per cent, comprising an 8.33 per cent bonus and a 1.67 per cent ex-gratia payment.

The benefits extend to employees within the Tamil Nadu Power Distribution Corporation, state transport corporations, the Tamil Nadu Civil Supplies Corporation, and the Tamil Nadu Cooperative Milk Producers’ Federation. Additionally, employees of the Tamil Nadu Housing Board and the Chennai Metropolitan Water Supply and Sewerage Board will receive a 10 per cent package. Temporary workers at the Tamil Nadu Civil Supplies Corporation will receive a separate ex-gratia payment of Rs 3,000 each.

Eligibility is subject to a monthly salary ceiling of Rs 21,000, while the payment calculation is based on a monthly wage ceiling of Rs 7,000. The government noted that these limits have been relaxed to extend benefits to more workers.