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Deepavali Delight: Tamil Nadu Government Announces Generous Bonus for State PSU Employees

October 6, 2025
in National, Politics
Reading Time: 2 min

Ahead of the festive Deepavali season, the Tamil Nadu government recently delivered good news by announcing a substantial bonus and ex gratia compensation for more than 2.69 lakh eligible employees and workers of State-run Public Sector Undertakings (PSUs) for the 2024-25 fiscal year. This thoughtful gesture will incur an expenditure of ₹376.01 crore for the State exchequer, made possible through the relaxation of norms under the Payment of Bonus (Amendment) Act, 2015.

For workers in the C and D categories within profit-making PSUs, the announcement means a total payout of 20%. This includes an 8.33% bonus and an additional 11.67% ex gratia, reflecting the allocable surplus of their respective undertakings. This benefit extends to eligible employees in major entities such as TANGEDCO, various State Transport Corporations, and the Tamil Nadu Civil Supplies Corporation, among others, as detailed in an official press release.

Employees in the C and D categories working in PSUs that do not possess an allocable surplus will still receive a bonus of 8.33% combined with a 1.67% ex gratia payment. This ensures a 10% total payout for these workers, including those at the Tamil Nadu Housing Board and the Chennai Metropolitan Water Supply and Sewerage Board.

Further provisions include an 8.33% bonus for C and D category workers of the Tamil Nadu Water Supply and Drainage Board. Contract staff of the Tamil Nadu Civil Supplies Corporation are set to receive an ex gratia of ₹3,000, while permanent employees across these PSUs can look forward to a bonus ranging from ₹8,400 to ₹16,800, underscoring the government’s commitment to its workforce during this celebratory period.

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