Hyderabad: In festive season news for state government employees, the Telangana government has announced an increase in the long-awaited Dearness Allowance (DA). The state’s Finance Department issued an order on Wednesday raising the DA for employees and pensioners from 22.75% to 26.39%, marking a 3.64% increase, effective retroactively from July 1, 2022.
According to the new orders, employees will see the revised DA in their November 2024 salaries, paid on December 1. Accrued DA arrears from July 2022 to October 2024 will be credited to employees’ Provident Fund accounts. For retirees before March 31, 2024, these dues will be settled in 17 installments.
For employees under the Contributory Pension Scheme (CPS), hired after September 1, 2004, 10% of the increased DA will go to CPS accounts, with the remainder distributed over 17 months from February 2025. Contingency employees will also receive arrears in 17 installments, while heirs of deceased employees will receive DA dues in cash.
The DA hike will impose an additional Rs. 300 crore monthly burden on the state, with an estimated Rs. 3,600 crore in total arrears due. Post-increase, the state’s salary and pension payout will total Rs. 5,400 crore monthly, while its income remains around Rs. 13,000 crore.
