Hyderabad.13.01.2026: The Telangana government has brought good news for state government employees and pensioners. On the occasion of the festival season, the government has officially announced an increase in Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners.
The Finance Department issued official orders through G.O.Ms.No. 2 for employees and G.O.Ms.No. 3 for pensioners. As per the orders, the revised DA and DR will be effective from July 1, 2023. Chief Minister A. Revanth Reddy stated that due to this increase, the state government will bear an additional financial burden of nearly ₹227 crore every month.
Revised DA and DR Rates
According to the new orders, the Dearness Allowance and Dearness Relief have been revised as follows:
- For employees and pensioners under Revised Pay Scales (RPS) 2020, DA/DR has been increased from 30.03% to 33.67%.
- For those under RPS 2015, DA/DR has been increased from 68.628% to 73.344%.
- For employees under UGC and AICTE 2016 pay scales, DA has been increased from 42% to 46%.
- For employees under 2006 pay scales, DA has been increased from 221% to 230%.
Who Will Benefit?
The DA and DR hike is applicable not only to state government employees and pensioners, but also to teaching and non-teaching staff working in various local and aided institutions. This includes employees of Zilla Parishads, Mandal Parishads, Gram Panchayats, Municipalities, Agricultural Market Committees, and Aided Educational Institutions.
Payment and Arrears Details
The increased DA and DR amount will be paid from February 1, 2026, along with the salary or pension for the month of January 2026. Arrears from July 1, 2023 to December 31, 2025 will be handled as per government guidelines.
- For serving employees, the arrears amount will be credited to their General Provident Fund (GPF) accounts.
- Employees and pensioners who retire before April 30, 2026 will receive the arrears in 30 equal monthly installments.
- Employees appointed after September 1, 2004 and covered under the Contributory Pension Scheme (CPS) will have 10% of the arrears credited to their PRAN accounts, while the remaining 90% will be paid in 30 monthly installments.
- In the case of employees who passed away before the issuance of these orders, the arrears amount will be paid in one lump sum to their legal heirs.
Additional Welfare Measures
Along with the DA and DR hike, Chief Minister Revanth Reddy also announced several welfare measures for government employees. These include ₹1 crore accident insurance coverage for all employees and allocation of land and funds for the construction of trade union buildings in the Secretariat.
The Chief Minister reiterated that government employees are the backbone of the administration and assured that the government is committed to transparent governance and is always ready to address the issues faced by employees and pensioners.
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