In a sweeping move that underscores its commitment to public servants, the Andhra Pradesh government has rolled out a substantial package of benefits for state employees and pensioners. Chief Minister N. Chandrababu Naidu, meeting with union representatives in Undavalli, unveiled measures that promise financial relief and enhanced security for thousands.

Key facts

  • 12th Pay Revision Commission to be constituted
  • Two pending DAs from July 2024 and January 2025 to be paid from October 2026
  • Additional annual expenditure: ₹2,880 crore
  • Enhanced pension benefits for those over 70 and 75 starting January 2027

Financial Relief and Timelines

The state will release two dearness allowances—pending since July 2024 and January 2025—starting October this year. Surrender leave dues for 2022 will hit employees’ accounts by Sankranti in 2027, offering timely liquidity. Police personnel get an extra surrender leave payout during Dasara, a gesture that acknowledges their unique demands.

Support for the Elderly

Pensioners aged above 70 will see a 10% boost in their monthly checks, while those over 75 get 15% more, effective January 2027. It’s a clear nod to the rising cost of living and healthcare for seniors. The government also plans to streamline the Employees Health Scheme, with monthly bill payments to the NTR Vaidya Seva Trust starting in October.

Describing the employees as an integral part of the government, Mr. Naidu assured that the government would extend all possible support in resolving their issues.

Broader Context

These decisions follow a series of pro-employee steps taken over the past 27 months. The government has cleared long-pending contributions, reimbursements, and arrears, paid salaries and pensions punctually, and extended the Old Pension Scheme to eligible staff. Regularisation processes for contract employees and updated maternity leave policies signal a broader, inclusive approach to workforce welfare.