Assam Tea Workers Celebrate 20% Durga Puja Bonus from 7 Major Tea Estates

Breaking News: Tea workers across Assam have significant cause for celebration as 90 tea estates belonging to seven major tea groups have announced the maximum permissible 20% Durga Puja bonus for 2024-25, bringing festive joy to approximately 450,000 workers and their families.

Historic Achievement for Worker Welfare

The announcement seemingly represents a landmark victory for the Assam Chah Mazdoor Sangha (ACMS), the state’s largest tea workers’ union, which has been apparently advocating for maximum bonus payments. This achievement comes at a crucial time when Assam’s tea industry employs over 684,064 workers across the state, making it one of India’s largest formal sector employers.

ACMS General Secretary Rupesh Gowala emphasized the significance of this development: 

“This is a landmark achievement for our tea workers, who form the backbone of Assam’s economy. We have been vigorously advocating for the industry to pay the maximum bonus, and this decision by seven major groups covering 90 estates will significantly impact the lives of thousands of workers during the festive season”.

Comprehensive Coverage Across Major Tea Groups

The bonus announcement spans seven prominent tea groups, creating the most extensive worker benefit program in recent years. Here’s the detailed breakdown of participating groups:

Distribution Strategy and Payment Timeline

The payment structures vary strategically across companies to manage cash flow while ensuring timely festival support for workers. Six out of seven groups have opted for staggered payments, while Dhunseri Group stands alone in providing the complete 20% bonus in a single installment.

The majority of tea groups (ACIL, Luxmi Group, Goodricke Group, and Asian Group) will distribute 15% before Durga Puja and the remaining 5% before Magh Bihu in January 2026. Meanwhile, Mcleod Russel and Andrew Yule have chosen a 12%-8% split, providing 12% before Durga Puja and 8% before Magh Bihu.

Economic Impact and Industry Context

This bonus announcement carries tremendous significance within Assam’s economic landscape. The tea industry serves as the economic backbone of Assam, contributing over 51% of India’s total tea output and accounting for one-sixth of global tea supply. With 803 registered large estates and thousands of smaller gardens, the sector directly employs approximately 676,835 people, with over half being permanent workers.

Tea production statistics for Assam reveal the industry’s massive scale:

• Annual tea production: 649.84 million kg in 2024 (down from 688.33 million kg in 2023)
• 52% of India’s total tea production originates from Assam
• The state contributes approximately 17% of global tea production
• Over 700,000 workers are directly employed in the sector

Legal Framework and Worker Rights

The bonus payments operate under the Payment of Bonus Act, 1965, which mandates a minimum bonus of 8.33% and sets a maximum ceiling of 20%. The benefit extends to all permanent and temporary workers who have completed a minimum of 30 days of service, ensuring broad coverage across the workforce.

This legal framework ensures that the 20% bonus represents the maximum permissible payment under Indian labor law, making this announcement particularly significant for worker welfare.

Historical Context and Precedent

This year’s announcement builds on positive precedent from 2023, when nearly all major producers including Andrew Yule, James Warren, Rossel India, Goodricke, MK Shah Exports, Stuart Holl, Laxmi Tea, and numerous individually-owned estates paid the full 20% bonus.

The Assam Government has also demonstrated strong support for worker welfare, approving a 20% bonus for Assam Tea Corporation Limited (ATCL) tea gardens employees, amounting to ₹78.13 crore.

Industry Challenges and Resilience

Despite facing significant challenges including production declines due to adverse weather conditions, heatwaves, and flooding during peak harvesting seasons, the industry’s commitment to maximum bonus payments demonstrates remarkable resilience. The 7.8% decrease in 2024 tea production has not deterred companies from prioritizing worker welfare.

Average tea prices have increased by nearly 18% in 2024, reaching ₹198.76 per kg, which has helped offset production losses and maintain bonus payment capabilities.

Regional Distribution and Estate Coverage

The participating estates span across major tea-producing districts of Assam, including:

Upper Assam Tea Belt: ACIL estates including Digulturung, Rangagora, Dinjan, Thanai, Nudwa, Hazelbank, Greenwood, Maijan, Borborooah, Khoomtaie-Hajua, Doomur Dollong, Mohokutie, Katalgoorie, and Kondoli.

Goodricke Group estates: Amgoorie, Orangajuli, Nonaipara, Borbam, Bargang, Dejoo, Harmutty, Sessa, Harchurah, Borpatra, Koomber, and Coombergram.

Luxmi Group estates: Moran, Sepon, Attabarie, Lepetkatta, Dirai, Kenduguri, Mahakali, Addabarie, Narayanpur, Shyamguri, Monmohinipur, Manobag, and Urrunabund.

Future Implications and Industry Outlook

This comprehensive bonus announcement sets a positive precedent for the entire tea industry in Assam. The ACMS is now leveraging these agreements in ongoing discussions with remaining estates, with expectations that all tea gardens across the state will follow suit and announce the maximum 20% bonus.

The announcement represents more than just monetary compensation—it signifies the industry’s recognition of workers’ dedication and the rising cost of living. As ACMS President Paban Singh Ghatowar noted: “The bonus payment is not just a legal obligation but a recognition of the hard work and dedication of our tea garden workers, who form the backbone of this industry”.

Conclusion

The celebration of 20% Durga Puja bonus from seven major tea estates marks a historic milestone in Assam’s labor relations. Covering 90 tea estates and approximately 450,000 workers, this initiative demonstrates the industry’s commitment to worker welfare during challenging economic times.

As families across Assam’s tea gardens prepare for Durga Puja festivities with enhanced financial security, this bonus announcement reinforces the vital relationship between economic prosperity and cultural celebration in the world’s largest tea-growing region. The success of this initiative may well establish a new standard for worker welfare and industrial harmony in India’s plantation sector.