TN Govt Grants 20% Diwali Bonus for 2.6 Lakh PSU Workers

Tamil Nadu CM Vijay has sanctioned a 20% Diwali bonus for 2.6 lakh PSU workers, costing ₹367.20 crore; TANGEDCO and AAVIN staff included.
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TN Govt Grants 20% Diwali Bonus for 2.6 Lakh PSU Workers
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Wednesday October 28, 2026
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Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a 20% bonus for Group C and D employees of profit-making state public sector undertakings (PSUs) ahead of the Diwali festival, with 2.60 lakh workers set to benefit and a total outlay of ₹367.20 crore to the state exchequer.

Under the announcement, each eligible worker will receive between ₹8,400 and ₹16,800. The 20% payout is structured as a statutory bonus of 8.33% and an ex-gratia component of 11.67%. Workers at the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), Tamil Nadu State Transport Corporations, Tamil Nadu Civil Supplies Corporation and the Tamil Nadu Co-operative Milk Producers’ Federation (AAVIN) are covered under this bracket.

For Group C and D workers at PSUs that do not have an allocable surplus, including the Tamil Nadu Housing Board and the Chennai Metropolitan Water Supply and Sewerage Board, the government will pay a bonus of 8.33% and an ex-gratia of 1.67%. Eligible workers of the Tamil Nadu Water Supply and Drainage Board will receive a bonus of 8.33%, while temporary workers of the Tamil Nadu Civil Supplies Corporation will get an ex-gratia payment of ₹3,000.

“The announcement would motivate workers and enable them to celebrate the upcoming festival with greater enthusiasm, while reinforcing the government’s goodwill towards the workforce,” the Government of Tamil Nadu stated in the official release.

Separate orders will be issued for employees of cooperative institutions and other allied organisations, the release added.

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