Andhra Pradesh approves the 12th Pay Revision Commission and clears pending allowances for government employees

The Andhra Pradesh government has announced major financial relief for state government employees and pensioners following discussions between Chief Minister N. Chandrababu Naidu and employee union leaders. The government officially approved the constitution of the long-awaited 12th Pay Revision Commission (PRC), which will review basic salaries, allowances, and overall service benefits to recommend an updated pay structure for the state workforce.

To provide immediate relief against inflation, the state will release two pending Dearness Allowance (DA) instalments starting from October 1, 2026. These payments-which cover pending dues from July 2024 and January 2025-will directly boost the monthly take-home earnings of active government workers and the payouts received by retired staff.

The government also agreed to clear backlogged surrender leave payments dating back to 2022. In government service, surrender leave allows employees to exchange unused earned leave for cash; these delayed funds will be deposited directly into bank accounts by January 2027 in time for the Sankranti festival. Additionally, police personnel will receive an extra surrender leave payout during the Dasara festival.

The announcement also includes support for senior citizens and healthcare access. Starting in January 2027, pensioners older than 70 will receive an additional 10% pension hike, while those aged 75 and above will see a 15% increase. The government will also strengthen the Employees Health Scheme (EHS) by transferring monthly payments directly to the NTR Vaidya Seva Trust to guarantee cashless hospital care.