Samsung Electronics And Workers Reach Pact On Wage Hike, Promotions

Samsung Electronics and its long protesting workers have reached a pact on wage hikes, promotions and other incentives after the Tamil Nadu government intervened to broker peace. 

The electronics major has agreed to pay a salary hike of Rs 18,000 over the next three years — Rs 9,000 in 2025–26 and Rs 4,500 each in 2026–27 and 2027–28. A special pay of Rs 1,000–4,000 will be given based on experience over a period of three years, according to a release on Monday. 

A one-time special promotion will be given to workers — operators and technicians — who have not been promoted after completing six years of formal service as on 31.03.2025. Three days of marriage leave, and five days of bereavement leave will be provided to workers from 01.01.2025. 

Paternity leave will be increased from three days to five days and the current 30 days that can be added to the annual leave account will be increased to 90 days and the leave saved beyond 90 days will be converted into cash. A bonus of Rs 2,000 will be provided to the first two children born to the workers from 01.01.2025. The wedding gift of the workers will be increased to Rs 2,000.

A long service award of Rs 10,000 will be given to those who complete five years of service. Those who have completed 10 years, 15 years and 20 years of service will be given Rs 20,000, Rs 30,000 and Rs 40,000 respectively. 

The company will facilitate transportation for the workers. The current 18 buses will be converted into 109 air-conditioned buses. The medical insurance facility for the worker will be increased from Rs 2.5 lakh to Rs 3 lakh from 01.04.2025. One month's basic salary and dearness allowance will be provided as an incentive.

In the event of the unexpected death of the worker, the family emergency assistance of Rs 5,000 will be provided and increased to Rs 1 lakh from January 2025.

"At Samsung, employee welfare remains a top priority," a Samsung India spokesperson said. "We have constructively engaged with all our workers at the Chennai plant and are delighted to announce a mutual agreement to enhance wages and benefits for the next three years."

"This collaborative approach reflects our unwavering commitment to the well-being of our workers and fostering a stable, harmonious, and forward-looking work environment," the spokesperson said. "We thank the Honourable Chief Minister of Tamil Nadu, the Minister for Labour and Employment, and the Minister for Industries for their continued support, and remain committed to building a positive and productive workplace in the region."

Tamil Nadu Labour Department officials held discussions between the two parties regarding the demands for wage hike and welfare benefits raised by the Samsung India Workers' Union.

The Samsung India Workers' Union gave a strike notice against the management regarding wage hike and general demands. The strike was called in September 2024 while negotiations in this regard were pending.

In the negotiations held by the state labour minister to call off the strike, the management was directed to file a written response before the Conciliation Officer on the wage hike and general demands put forward by the workers.