Good News Drops for Govt Employees! DA Raised, Arrears Coming Soon
In a significant development for government employees, the Telangana State Government on Friday sanctioned one pending installment of Dearness Allowance (DA), revising it from 26.39% to 30.03% of the basic pay.
Hyderabad: In a significant development for government employees, the Telangana State Government on Friday sanctioned one pending installment of Dearness Allowance (DA), revising it from 26.39% to 30.03% of the basic pay. The increase is effective from January 1, 2023, according to G.O. Ms. No. 78 issued by the Finance Department.
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Revised DA to Be Paid with June 2025 Salary
The revised DA amount will be disbursed along with the June 2025 salary, payable on July 1, 2025. This decision comes after increasing pressure from employee unions and follows a recent Telangana cabinet meeting, during which the government assured the release of one DA immediately and another in six months.
Arrears from Jan 2023 to May 2025 to Be Credited to GPF Accounts
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Arrears for the period January 1, 2023 to May 31, 2025 will be credited to the General Provident Fund (GPF) accounts of eligible government employees. This approach aims to manage the fiscal impact while ensuring employees receive the due benefits.
Special Provision for Retiring Employees:
Employees who are due to retire on or before October 31, 2025 will not receive arrears in GPF. Instead, they will receive the total arrears in 28 equal monthly installments (EMIs), as they are exempt from GPF contributions in the last four months of service.
Employee Unions Continue to Demand Release of All Pending DAs
Currently, five DA installments remain pending. The government’s recent move is seen as a partial fulfillment of long-standing demands. The second DA installment is expected to be released after six months, as per the cabinet’s earlier decision.
What This Means for Telangana Government Employees
This DA hike will provide a much-needed financial cushion to lakhs of state employees and pensioners, who have been dealing with rising living costs. While this approval is a welcome move, the employee associations are expected to continue pressing for the release of all pending DA installments.
- DA hiked from 26.39% to 30.03% of basic pay.
- Effective Date: January 1, 2023.
- Payment Date: Along with June 2025 salary (credited July 1).
- Arrears to be credited to GPF; EMIs for those retiring by Oct 2025.
- Next DA installment to be released in six months.
