Tamil Nadu Sugar Mill Workers to Get Up to 20% Bonus Ahead of Deepavali

The Tamil Nadu government on Monday announced bonus and ex-gratia payments for workers and employees of cooperative and public sector sugar mills for the financial year 2025-26, ahead of the upcoming Deepavali festival.

According to an official release, the decision was taken on the instructions of Chief Minister C Joseph Vijay to enable sugar mill workers and employees to celebrate the festival with joy.

Tamil Nadu currently has 18 sugar mills, comprising 16 cooperative and two public sector units. Under the government order, workers at the Subramaniya Siva and Kallakurichi-II cooperative sugar mills will receive a maximum bonus of 20 per cent, as both mills have a registered allocable surplus.

The 20 per cent payout includes an 8.33 per cent statutory bonus and a 1.67 per cent ex-gratia payment, along with the applicable surplus-linked component.

For employees of the remaining 14 cooperative and two public sector sugar mills, the government has sanctioned a 10 per cent bonus, comprising an 8.33 per cent statutory bonus and a 1.67 per cent ex-gratia payment.

The festive benefit is expected to cover approximately 5,190 workers and employees across all 18 sugar mills in the state.

The government will incur an expenditure of Rs 351.40 lakh towards the bonus and ex-gratia payments.

The announcement comes ahead of Deepavali, one of the major festivals celebrated in Tamil Nadu, and is aimed at extending financial support to employees of the state's cooperative and public sector sugar mill units.

The government said the initiative was intended to ensure that workers could celebrate the festival with their families.