The Telangana government has cleared two pending dearness allowance instalments for state employees and pensioners, raising the DA from 33.67 per cent to 40.04 per cent of basic pay and creating an additional annual burden of about ₹3,057 crore on the state exchequer.
The first instalment increases DA by 3.64 percentage points, to 37.31 per cent of basic pay, with effect from January 1, 2024. The second raises it by another 2.73 percentage points, taking the allowance to 40.04 per cent from July 1, 2024.
The revised DA will be paid with the October 2026 salary and pension, payable on November 1, according to the orders reported by Deccan Chronicle. The two instalments together represent a cumulative increase of 6.37 percentage points for eligible government employees and pensioners.
Of the annual financial impact, ₹1,747 crore will be required for the 3.64 per cent instalment and ₹1,310 crore for the 2.73 per cent instalment. The orders also provide for arrears to be paid according to employees’ eligibility, with different arrangements for staff covered by the General Provident Fund and the Contributory Pension Scheme.
For employees covered by the GPF, arrears will be credited to their GPF accounts. Employees retiring on or before January 31, 2027, will receive the arrears in 33 equal monthly instalments. The orders exempt these employees from GPF subscription during the last four months of service, according to the report.
For employees covered under the CPS, 10 per cent of the DA arrears for the period from January 2024 to September 2026 will be credited to their Permanent Retirement Account Number accounts along with the government’s contribution. The remaining 90 per cent will be paid in 33 equal monthly instalments beginning November 1.
The decision was welcomed by Telangana Employees Joint Action Committee chairman Maram Jagadishwar and secretary-general Eluri Srinivas Rao, who thanked Chief Minister A. Revanth Reddy. The employee representatives also urged the government to address other pending demands, including obtaining the Pay Revision Commission report and implementing 51 per cent fitment.
The TGEJAC further sought an increase in the monthly clearance of pending bills from ₹1,000 crore to ₹2,000 crore. It also called for the release of three additional pending DA instalments due from January 1, 2025, July 1, 2025, and January 1, 2026. The immediate implementation of the cleared instalments is scheduled through the October salary and pension payments due on November 1.
