Tamil Nadu’s big festive push: CM MK Stalin announces 20% bonus, ex-gratia for over 2.6 lakh PSU workers

Workers to get Rs 376 crore in bonuses and benefits as Tamil Nadu celebrates record 9.69% economic growth

In a major pre-festive boost, Tamil Nadu Chief Minister MK Stalin on Monday announced a 20 percent bonus and ex-gratia payment for ‘C’ and ‘D’ category workers across all state public sector undertakings (PSUs). The announcement, detailed in an official release as cited by ANI, is both a recognition of workers’ contribution to the state’s rapid economic progress and a morale booster ahead of the festive season.

The decision will benefit 2,69,439 employees, with the state government setting aside Rs 376.01 crore for the bonus and ex-gratia disbursement.

Economic strength built on workers’ shoulders

Tamil Nadu, India’s second-largest economy, has been on a strong growth trajectory, clocking a 9.69 percent economic growth rate for 2024–25, the highest among Indian states and also the state’s best in four years, according to ANI.

According to the government, as cited by ANI, this milestone is the result of tireless efforts by workers, employees, and officers across government, PSUs, and private enterprises. “Their hard work has ensured not just growth but also positioned Tamil Nadu as an attractive destination for foreign investment,” the release said.

Bonus and ex-gratia structure explained

Under the amended Bonus Act, 2015, the wage ceiling for eligibility is Rs 21,000 per month, while the calculation ceiling stands at Rs 7,000 per month. The government has relaxed these ceilings to cover all ‘C’ and ‘D’ category employees in state PSUs.

Here’s how the payout structure looks:

• ‘C’ and ‘D’ category employees: 20 percent total benefit (8.33 percent bonus + 11.67 percent ex-gratia)
• Eligible workers: Minimum Rs 8,400 and maximum Rs 16,800 payout
• Permanent workers: Covered fully under the scheme
• Separate government orders will be issued soon for employees in cooperative institutions and societies.

The announcement also highlights Tamil Nadu’s consistent leadership in women’s participation in the workforce. The state has rolled out several social empowerment schemes, including Vidiyal Payanam, which offers free bus travel for women, and affordable working women’s hostels being built across districts.

These measures, the government said, are aimed at ensuring that “social and economic empowerment go hand in hand with growth.”

A message from the Chief Minister

Chief Minister Stalin described the move as a gesture of gratitude towards the state’s working class. “Public sector workers have been the backbone of Tamil Nadu’s development. Recognising their contribution, the government has decided to grant bonuses and ex-gratia payments to motivate and support them,” he said.

With the festive season approaching, the payout is expected to lift morale and bring cheer to thousands of families across the state.