Andhra Pradesh has approved two long-pending dearness allowance (DA) revisions for state government employees, local body personnel and university staff, as per a report by The Hindu on Friday.
This was earlier announced by Chief Minister N Chandrababu Naidu last Saturday. He added that the state would also appoint the 12th Pay Revision Commission (PRC) to address long-pending demands by government employees, PTI reported
As per TH report, the combined increase gives Andhra Pradesh employees a DA hike of 4.55%, to be implemented from September 2026 and disbursed with salary released in October this year.
What is approved DA hike for state employees?
- The first installment of 2.73% hike, which takes DA from 37.31% to 40.04% of basic pay comes retroactively in effect from July 2024, TH reported.
- The second installment of 1.82%, takes DA from 40.04% to 41.86% of basic pay comes retroactively in effect from January 2025, it added.
When will Andhra Pradesh employees get DA arrears?
Notably, arrears for both these hikes, first for the period from July 2024 to August 2026, and second for the period from January 2025 to August 2026, will be released in structured installments in 2027 and 2028 salaries, as per TH report.
According to a report by the Deccan Chronicle, arrears for the first installment will be paid through April, June, August and October 2027. Further, it added that arrears for the second installment will be paid through January, March, May and July 2028.
What about employees under OPS?
As per TH report, employees still under the old pension scheme (OPS), will see the arrears credited to their General Provident Fund (GPF) accounts. Meanwhile those under Contributory Pension Scheme (CPS) will receive credits to their PRAN accounts and cash installments, it added.
Andhra Pradesh to appoint 12th PRC
According to Andhra Pradesh Government Employees Association state president Surya Narayana, pay revisions under the 12th PRC are due since 1 July 2023.
PTI reported that Naidu last week took several key decisions to resolve government employees' pending salary issues, which will cost the exchequer ₹2,880 crore per annum. These include:
- Agreeing to constitute the 12th PRC
- Payment of two pending DA installments
- Agreed to credit the surrender leave amount pertaining to 2022 into employees' accounts by the coming Sankranti festival.
- Payment of one additional surrender leave to police personnel during the upcoming Dasara festival.
- An additional quantum of pension will be implemented from January 2027 — 10% more to pensioners above 70 years of age and 15% more to those over 75 years, it said.
- Assured streamlining the Employees Health Scheme (EHS), promising that from October onwards the government will make monthly payments to the NTR Vaidya Seva Trust.
(With inputs from Agencies)
