Chennai: The Tamil Nadu government has announced Diwali bonus and ex-gratia payments for approximately 5,190 workers and employees working in cooperative and public sector sugar mills across the state. The announcement covers the financial year 2025–26 and is aimed at helping employees celebrate the upcoming Deepavali festival.
According to the government announcement issued on November 2, 2026, a total of ₹3.51 crore has been allocated towards bonus and ex-gratia payments for employees working in 18 sugar mills across Tamil Nadu.
20% Bonus For Two Cooperative Sugar Mills
Tamil Nadu currently operates 16 cooperative sugar mills and two public sector sugar mills. Under the latest government order, employees of two cooperative sugar mills — Subramaniya Siva and Kallakurichi-II — will receive a combined bonus and ex-gratia payment of 20%.
The payment comprises an 8.33% statutory bonus and an additional 11.67% ex-gratia amount. These two mills have an allocable surplus, making their employees eligible for the higher payment.
10% Bonus For Employees Of Other Sugar Mills
Workers and employees in the remaining 14 cooperative sugar mills and two public sector sugar mills will receive a total bonus and ex-gratia payment of 10%.
This comprises an 8.33% statutory bonus and an additional 1.67% ex-gratia payment.
The government has structured the payments based on the financial position and allocable surplus of the respective sugar mills.
5,190 Employees To Benefit From The Announcement
The latest decision is expected to benefit approximately 5,190 workers and employees across all 18 cooperative and public sector sugar mills in Tamil Nadu.
The total financial commitment for distributing the bonus and ex-gratia payments is estimated at ₹351.40 lakh (₹3.514 crore).
The announcement is part of the state government’s broader festive welfare measures for employees working in cooperative institutions and public sector organisations.
Government Focuses On Employee Welfare Ahead Of Deepavali
The Diwali bonus announcement is expected to provide additional financial support to sugar mill employees ahead of the festival season, when household expenses generally increase.
By extending bonus and ex-gratia payments across all 18 sugar mills, the Tamil Nadu government has covered employees of both cooperative and public sector establishments under the latest initiative.
The decision also reflects the state’s continued focus on employee welfare and financial assistance for workers ahead of major festivals.
