CM Chandrababu Naidu approved the 12th PRC, announced two pending DAs from October 2026 and restored Additional Quantum of Pension from January 2027.
AMARAVATI: Chief Minister N. Chandrababu Naidu on Saturday approved the constitution of the 12th Pay Revision Commission (PRC) and announced the release of two pending Dearness Allowances (DAs) for State government employees, while also clearing several long-pending demands concerning employees and pensioners.
The decisions were taken during a meeting with representatives of employee associations under the Joint Staff Council at the Chief Minister’s camp office.
Naidu told the employee representatives that government employees were an integral part of the administration and assured them that the government would continue to support them.
The Chief Minister explained the State's present financial position and placed details of revenue and expenditure before the employee representatives. Despite the financial constraints, he said the government was committed to resolving employee-related issues.
The Chief Minister approved the appointment of the 12th Pay Revision Commission.
He also agreed to release two pending DAs pertaining to July 1, 2024 and January 1, 2025. The two DAs will be paid with effect from October 1, 2026.
Naidu further agreed to credit the 2022 surrender leave dues into employees' accounts by the coming Sankranti.
He also expressed willingness to provide one additional surrender leave to police personnel during the upcoming Dasara festival.
In a major relief to pensioners, the government has decided to restore the Additional Quantum of Pension, which was cancelled by the previous government.
The benefit will be restored from January 2027.
Under the decision, pensioners aged above 70 years will receive an additional 10 per cent pension, while those aged above 75 years will receive an additional 15 per cent.
The Chief Minister said the government was giving priority to resolving the issues of retired employees and ensuring that pensioners did not face financial difficulties.
Naidu directed officials to streamline the Employees’ Health Scheme (EHS) and ensure that monthly payments are made to the NTR Vaidya Seva Trust from next month.
The decisions announced for employees and pensioners will entail an additional annual financial burden of approximately ₹2,880 crore on the State government.
The Chief Minister said the government had been paying salaries regularly on the first day of every month for the past two years and had also been disbursing pensions to retired employees despite the State's financial difficulties.
He said the government had extended the Old Pension Scheme (OPS) to 11,000 CPS employees and had so far cleared ₹30,849 crore in pending employee-related bills.
Naidu alleged that the previous government had resorted to indiscriminate borrowing at high interest rates, creating a significant financial burden for the State.
He said the present government had held discussions with financial institutions and rescheduled loans worth around ₹1.50 lakh crore, substantially reducing the interest burden.
According to the Chief Minister, the government is currently paying an average interest rate of 9.1 per cent on its borrowings and is gradually putting the State's financial systems back on track.
Naidu said employees should remember the financial and administrative circumstances prevailing during the previous government.
He alleged that the previous administration had kept several benefits due to retired employees pending and had humiliated employees through pamphlets, hoardings and newspaper advertisements.
The Chief Minister said employees and their associations had faced difficulties in directly communicating their concerns during that period.
He reiterated that the coalition government was giving the highest priority to resolving the issues of retired employees.
Naidu also pointed out that the government had provided 43 per cent fitment, despite the financial implications involved.
Representatives of employee associations who attended the meeting welcomed the decisions announced by Chief Minister Chandrababu Naidu.
They expressed gratitude to the government for taking a positive approach towards their long-pending demands and concerns.
The employee representatives particularly welcomed the decision to restore the Additional Quantum of Pension, noting that the benefit had previously provided financial support to retired employees before being discontinued.
They also thanked the government for increasing the retirement age of employees in public sector organisations.
The representatives said they understood the financial challenges facing the State and assured the government of their full cooperation in the development of Andhra Pradesh and implementation of its programmes.
Ministers Payyavula Keshav and Anagani Satya Prasad, along with senior officials, participated in the meeting.
