Andhra Pradesh clears pending DA, sets up 12th Pay Commission

Andhra Pradesh Chief Minister N. Chandrababu Naidu on Saturday announced a raft of measures for state government employees and pensioners, including the constitution of the 12th Pay Revision Commission (PRC) and the release of two pending dearness allowances (DAs). The decisions, taken after discussions with representatives of 11 employees' unions at his Undavalli camp office, are expected to cost the exchequer an additional ₹2,880 crore annually.

The government will release the DAs due from July 1, 2024, and January 1, 2025, with payments starting October 1, 2026. Surrender leave dues for 2022 will be credited to employees' accounts by Sankranti 2027. Police personnel will receive one additional surrender leave during Dasara.

Pensioners above 70 years will get an additional 10% pension, while those above 75 will receive 15%, effective January 2027. The Employees Health Scheme (EHS) will be streamlined, with monthly payments to the NTR Vaidya Seva Trust beginning next month.

Mr. Naidu described employees as integral to governance and assured continued support. The announcements build on earlier measures by the coalition government, which has cleared pending CPS contributions, APGLI, GIS, medical reimbursements, GPF, gratuity, and commutation dues. Leave encashment arrears for retirees have been cleared up to June 2025, and additional surrender leave arrears for police have been released.

The government has also extended the Old Pension Scheme to about 11,000 eligible CPS employees, raised the retirement age for PSU staff from 60 to 62, restarted regularisation for 8,000 contract employees, and eased rules for child care and maternity leave. An e-DPC system and a Retirement Benefits Processing System have been introduced to expedite promotions and pension processing.