Andhra Pradesh raises employee dearness allowance to 41.86%
Andhra Pradesh has approved two delayed dearness allowance instalments, raising the rate for employees covered by the 2022 revised pay scales from 37.31% to 41.86% of basic pay. Nearly five lakh employees and other staff are expected to benefit, while arrears will be settled in stages.
The Andhra Pradesh government has approved two long-pending dearness allowance instalments, increasing the allowance for eligible employees from 37.31% to 41.86% of basic pay. The decision, contained in Government Orders 119 and 120, is expected to benefit nearly five lakh government employees, teachers, university faculty and local-body personnel. The revised allowance will be reflected in salaries from the September pay cycle, paid at the beginning of October.
The orders provide a 2.73 percentage-point increase from July 1, 2024, and a further 1.82 percentage-point increase from January 1, 2025. The allowance is intended to compensate employees for the effects of inflation and is calculated as a percentage of basic pay. The benefit also applies, where relevant, to higher-education teaching staff paid under University Grants Commission and All India Council for Technical Education scales.
Employees will receive arrears for the period during which the revised payments were pending. The government plans to settle the arrears through a phased mechanism extending into 2027 and 2028 rather than paying the full liability at once. The amount due will depend mainly on basic pay and the period covered.
The orders cite potential arrears ranging from about ₹1.23 lakh for basic pay of ₹20,000 to about ₹11.07 lakh for basic pay of ₹1.79 lakh. For employees under the Old Pension Scheme, arrears will be credited to General Provident Fund accounts. Under the Contributory Pension Scheme, 10% will go to pension or PRAN accounts and 90% will be paid in cash according to the schedule.
Special provisions apply to some employees retiring between 2025 and late 2027.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.