Telangana announces revision in DA and DR; seven lakh families to benefit

Hyderabad: In a significant New Year gift to the state workforce and retirees, the Telangana State government has announced a substantial revision of the Dearness Allowance (DA) and Dearness Relief (DR) with the government order issued on January 12.

This is a long-standing demand and will benefit over seven lakh families in Telangana.

Retrospective benefits from July 2023

The revision is effective retrospectively from July 1, 2023. This move aims to compensate employees and pensioners for the rising cost of living over the past two and a half years.

The hike applies to a wide range of pay scales, from the State’s Revised Pay Scales (RPS) to national UGC and AICTE standards.

Revised rates according to GO

The government has updated the allowance rates across various pay structures to ensure equitable benefits:

Revised Pay Scales (RPS) 2020: Increased from 30.03% to 33.67% of basic pay/pension.

Revised Pay Scales (RPS) 2015: Increased from 68.628% to 73.344%.

UGC/AICTE 2016 Scales: Revised from 42% to 46%.

UGC/AICTE 2006 Scales: Revised from 221% to 230%.

Payment schedule and arrears disbursement

To maintain fiscal balance while ensuring employees receive their dues, the government has structured the payments as follows:

Immediate Cash Benefit: The revised DA/DR will be included in the January 2026 salaries and pensions, which will be paid on February 1.

GPF Credits for Employees: For active employees, the arrears accumulated from July 2023 to December 2025 will be credited to their General Provident Fund (GPF) accounts.

30-Month Instalment Plan: For pensioners and employees nearing retirement (retiring on or before April 30), the arrears will be paid in 30 equal monthly instalments, beginning from the January 2026 pay cycle.

Special Provision for CPS: Employees under the Contributory Pension Scheme will see 10 per cent of their arrears credited to their PRAN accounts, with the remaining 90 per cent paid in 30 monthly instalments.

Inclusive coverage across departments

The scope of these orders is extensive, covering not just direct state employees but also:

Local Bodies: Staff of Zilla Parishads, Municipalities and Gram Panchayats.

Education Sector: Teaching and non-teaching staff of Aided Institutions and all state Universities

Special Workers: Full-time contingent employees and a special ad-hoc increase of Rs 100 per month for Part-Time Assistants and Village Revenue Assistants (VRAs).

Compassionate measures

Aiming for a notable humane gesture, the government has directed that in the event of an employee’s death before the issuance of these orders, the accumulated arrears shall be paid to their legal heirs in a single lump sum amount, providing immediate financial support to the bereaved family.

Payments and backlogs

The GO addresses specific instalments from mid-2023 and coincides with the national-level discussion and scheduled commencement of the 8th Pay Commission, which typically involves merging existing dearness components into the basic structure. Telangana have seen DR hikes of approximately 3.64 per cent.