Andhra Pradesh DA hike: 2 pending instalments, pension boost; what changes for govt employees from October?

Andhra Pradesh Chief Minister N Chandrababu Naidu on Saturday announced several measures to address the long-pending demands of government employees, including setting up the 12th Pay Revision Commission (PRC), releasing two pending Dearness Allowance (DA) instalments and increasing pensions for older pensioners from January 2027.

Naidu held a meeting with representatives of various employee associations and said employees were an integral part of the government. He assured them that the government would extend all possible support to them.

The government will appoint the 12th Pay Revision Commission, which will review the salaries and other benefits of government employees. The commission is due to be constituted from July 1, 2023.

When will employees get the pending DA?

The government will release two pending DA instalments along with the October 1, 2026 salary. DA, or Dearness Allowance, is an amount paid to government employees and pensioners to help offset the impact of inflation and rising prices.

The two instalments being released are those due from:

July 1, 2024

January 1, 2025

Andhra Pradesh Government Employees Association state president Surya Narayana said the Chief Minister had made five major announcements concerning employees.

“First, he announced the appointment of the 12th Pay Revision Commission, which is legitimately due to the employees from 1 July 2023. Second, out of the four instalments of DA due to the employees, he announced that two instalments, due from 1 July 2024 and 1 January 2025, will be paid along with the October 1st salary,” he said.

Pensioners will also receive the pending DA instalments.

What is surrender leave and when will employees get the money?

The government has also decided to pay employees the money due for surrendered leave from 2022 by the Sankranti festival.

Surrender leave is leave that an employee chooses not to take and instead receives money for it, subject to government rules.

Civil employees will be eligible for one surrender leave a year, while police personnel will get two, considering the nature of their duties. The additional surrender leave benefit for police personnel will be paid around Dasara, Narayana said.

How much extra pension will senior pensioners get?

The government will introduce the Additional Quantum of Pension from January 2027.

Under this provision:

Pensioners above 70 years will get 10% additional pension

Pensioners above 75 years will get 15% additional pension

In simple terms, eligible older pensioners will receive a percentage increase over their existing pension.

What is happening with the Employees Health Scheme?

The government has also decided to streamline the Employees Health Scheme (EHS).

It will make regular monthly payments to the NTR Vaidya Seva Trust from next month to ensure the scheme functions more smoothly for employees and pensioners.

Why are employee associations demanding these measures?

APNGGOs Association State President Vidya Sagar said government employees, pensioners and teachers had faced difficulties between 2019 and 2024.

He said the government had explained its financial difficulties to employee representatives and sought their cooperation.

“... Employees, pensioners and teachers have faced many consequences from 2019 to 2024. For the last two years, whatever measures the government has given for the welfare of the employees, the CM has briefed us and explained the financial distress that the state government is having and asked all of us to cooperate... The common employees are not getting any DA or pay revision for the last two to two and a half years,” he said.

“Without pay revision and DA, we can’t face inflation and rising cost prices,” Vidya Sagar added.

According to the Andhra Pradesh government, the measures announced on Saturday will result in an additional annual expenditure of around ₹2,880 crore.

(With inputs from ANI)