Andhra Pradesh Chief Minister N Chandrababu Naidu has approved the establishment of the 12th Pay Revision Commission (PRC) and agreed to release two pending dearness allowances. This decision was announced following a meeting with leaders of employee associations representing the Joint Staff Council on September 5, 2026, at his camp office. A release detailed the discussions and commitments made during the meeting.

During the meeting, CM Naidu shared insights regarding the financial challenges currently facing the state, presenting figures on revenue and expenditure to employee representatives. He reaffirmed the government’s dedication to addressing employee concerns despite these difficulties, outlining key decisions aimed at improving employee welfare.

The Chief Minister confirmed that the two dearness allowances, due from July 1, 2024, and January 1, 2025, will be disbursed starting October 1, 2026. Furthermore, he announced the crediting of surrender leave dues from 2022 to employee accounts before the upcoming Sankranti festival.

Additional Benefits for Employees and Pensioners

In a significant move, CM Naidu also expressed intent to grant an additional surrender leave to police personnel as part of the forthcoming Dasara festival celebrations. The government has committed to reinstating the Additional Quantum of Pension for pensioners, a benefit that had been abolished by the previous administration. Starting January 2024, pensioners aged over 70 years will receive an extra 10 per cent, while those over 75 years will be given 15 per cent more.

Additionally, the Chief Minister has directed officials to enhance the Employees’ Health Scheme (EHS), ensuring monthly payments to the NTR Vaidya Seva Trust commence next month. These decisions are expected to lead to an additional annual expenditure of Rs. 2,880 crore for the state government.

CM Naidu highlighted the government’s commitment to regularly paying salaries on the first of each month for the past two years, alongside timely pension disbursement for retired employees. The extension of the Old Pension Scheme (OPS) to 11,000 CPS employees has also been a recent achievement, along with clearing Rs. 30,849 crore in pending employee-related bills.

Government’s Financial Strategy and Employee Relations

Addressing the financial backdrop, CM Naidu noted that the previous government had borrowed excessively at high interest rates. He mentioned efforts to renegotiate loans worth approximately Rs. 1.50 lakh crore with financial institutions, significantly lowering the interest burden for the state. Currently, the average interest rate on borrowings stands at 9.1 per cent.

The Chief Minister underscored the necessity to correct the fiscal practices of past administrations, referring to a reverse PRC introduced previously. He emphasised the importance of not forgetting the challenges employees faced during that period, highlighting their struggles to communicate their concerns adequately.

In conclusion, the Chief Minister assured that addressing the issues of retired employees remains a top priority for the coalition government, as it strives to ease their difficulties. Employee association leaders expressed their appreciation for the decisions taken by CM Naidu, acknowledging the favour extended to retired employees previously deprived of benefits. They thanked the government for restoring pensions and increasing the retirement age for public sector workers.

Employee representatives provided assurance of their continued cooperation in the development of Andhra Pradesh and the successful implementation of government initiatives, recognising the financial constraints while remaining committed to collaboration for progress.

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