Telangana | Release of two DA instalments to delay implementation of revised pay scales?

Release of two out of five pending installments of Dearness Allowance (DA) will entail expenditure of ₹2,500 crore for Telangana government. A view of Telangana State Secretariat. File | Photo Credit: NAGARA GOPAL The Telangana Government has partly conceded the persistent demand from the employees for implementation of hike in dearness allowance (DA) due since July 2023 by announcing release of two out of five pending instalments of State DA.But the announcement has raised doubts on the implementation of the impending revised pay scales. Release of the pending five DA instalments, due from July 1, 2023, would have resulted in enhancement of salaries by 15.43%. But the government has released two instalments amounting to around 5% reportedly imposing ₹2,500 crore burden on the exchequer.What are Dearness Allowances?They are allowances to offset rising costs. DAs are part of salaries.How often should it be increased?Twice a year: every January and JulyHow many DAs are pending for Telangana government employees and from when?Five DAs are pending, from July 1, 2023 to January, 2026What is Pay Revision?It is the revision of salaries of the government employees, once every five years based on Consumer Price Index (CPI) and other factors. 1% hike in DA amounts to ₹480 crore a year additional expenditureAccording to a tentative calculation made by senior officials engaged in Pay Revision Commission (PRC) work, one per cent increase in the DA would result in a burden of ₹40 crore a month on the government, amounting to ₹480 crore a year. In turn, it would result in a burden of ₹6,115 crore if the government releases all the five pending DA instalments working out to 12.74%.The announcement of DA pertaining to July 2026is still to be made and another DA instalment will be added from January next year compounding the problems of the State Government on financial front. In addition to announcing the two instalments of DA, the government said it would release the arrears due from July 2024 in instalments without specifying the period by which the total arrears would be paid.Revised pay scales after PRC reportOn the pay revision front, the government has assured that it would implement the revised pay scales after the Pay Revision Commission headed by retired bureaucrat N. Siva Sankar submits its report along with recommendations on the fitment benefit that should be given to different cadres of employees. The calculation of the new scales will be based on the DA-merged-salary scales of the staff indicating that the implementation of the PRC recommendations would depend on the release of the remaining instalments of the DA.The government had specified that the PRC should consider the current pay scales of the Telangana employees vis-a-vis pay scales of employees of other States and Central government. The commission should also take into account “the State’s revenue growth, State Government’s commitments for ongoing and future investments, development programmes and welfare schemes among others” for framing its recommendations.Given the stress on finances due to commitments like implementation of a spree of welfare schemes, mounting debt servicing burden and other factors, it is unlikely that the government would take a call on the implementation of the PRC recommendations in the near future. Published - October 02, 2026 04:54 pm IST