Tamil Nadu Announces Deepavali Bonus for 5,190 Sugar Mill Workers

CHENNAI — The Tamil Nadu government has announced bonus and ex-gratia payments for workers and employees of cooperative and public sector sugar mills across the state ahead of the Deepavali festival for the financial year 2025–26.

According to an official release, the initiative was ordered by Chief Minister C Joseph Vijay to support workers and ensure they can celebrate the festival.

There are currently 16 cooperative and two public sector sugar mills operating in Tamil Nadu. The directive applies differently depending on the financial status of the individual mills. Workers at the Subramaniya Siva and Kallakurichi-II cooperative sugar mills, both of which have a registered allocable surplus, will receive a maximum bonus of 20 percent. This total includes an 8.33 percent statutory bonus alongside a 1.67 percent ex-gratia payment.

Meanwhile, for the remaining 14 cooperative and two public sector sugar mills that do not fall under the surplus category, the government has sanctioned a total bonus of 10 percent. This comprises the standard 8.33 percent statutory bonus and a 1.67 percent ex-gratia component.

The festive announcement is expected to benefit approximately 5,190 workers and employees across all 18 mills in the state. To implement this directive, the state government will incur an expenditure of Rs 351.40 lakh.

"The announcement of a structured Deepavali bonus for cooperative and public sector sugar mill workers highlights the importance of workforce welfare in state-backed operations. Managing payouts based on allocable surpluses—such as the 20 percent bonus for surplus-generating mills versus the standard 10 percent for others—reflects a pragmatic approach to financial governance in traditional sectors. Ensuring timely festive support for over 5,000 employees helps maintain labor stability and morale in regional manufacturing and agricultural processing ecosystems." — Dr. Shishir Gupta, Founder & CEO, StartupLanes