Andhra Pradesh Chief Minister N Chandrababu Naidu announced significant financial commitments for government employees on Saturday following a meeting with employee associations. According to reports from PTI, the decisions will entail an additional annual expenditure of ₹2,880 crore to the government exchequer. The two pending Dearness Allowance instalments are due from 1 July 2024 and 1 January 2025, with arrears to be paid along with the October 2026 salary. As reported by ANI, the announcements came after a meeting with various employee associations where Naidu assured them the government would extend all possible support. The government has also cleared long-pending CPS contributions, APGLI, GIS, and medical reimbursement claims, including old arrears, and cleared pending GPF, gratuity, and commutation dues to active and retired employees.
The state has decided to implement additional quantum for pension from January 2027. According to PTI, pensioners above 70 years of age will receive an additional 10% pension, while those above 75 years will receive an additional 15% pension. For civil employees, there will be one surrender leave per annum, whereas police personnel will get two surrender leaves per annum, considering the nature of their duties. The government agreed to credit the surrender leave dues pertaining to 2022 to employees' accounts by the Sankranti in 2027, and for police personnel, one additional surrender leave will be paid during the Dasara festival. The Chief Minister has also agreed to credit the surrender leave amount pertaining to 2022 into employees' accounts by the coming Sankranti festival, with police personnel receiving payment for one additional surrender leave during the upcoming Dasara festival.
Pay revisions under the 12th Pay Revision Commission have been due to state employees from 1 July 2023. As reported by PTI, the commission has been approved and will review salaries and other benefits for government employees. The Chief Minister approved the constitution of the 12th Pay Revision Commission (PRC) and agreed that the DAs due from July 1, 2024, and January 1, 2025, will be paid from October 1, 2026. The state has also decided to implement additional quantum for pension from January 2027. Employees Health Scheme (EHS) will also be streamlined, with the government directing officials to streamline the Employees' Health Scheme (EHS) and ensure monthly payments to the NTR Vaidya Seva Trust commence next month, according to ANI. From October onwards, the government will make monthly payments to the NTR Vaidya Seva Trust, and the government also introduced e-DPC to clear long-pending promotions and launched a Retirement Benefits Processing System for pension and other retirement benefits.
Addressing the gathering, the Chief Minister highlighted the government's commitment to regular salary payments, stating "Despite the financial difficulties, the government [has been] paying salaries regularly on the first of every month for the last two years and disbursing pensions to retired employees." He criticised the previous government for indiscriminate borrowing at high interest rates and detailed efforts to reschedule loans worth around ₹1.50 lakh crore with financial institutions, reducing the state's interest burden. "At present, the government is paying an average interest rate of 9.1 per cent on its borrowings and gradually bringing the systems back on track," Naidu said. Employee association leaders welcomed the announcements, expressing gratitude for the government's proactive approach to long-pending issues and restoring the Additional Quantum of Pension, which had benefited retired employees before being cancelled by the previous administration.
