The Government of Telangana has officially sanctioned a revision in Dearness Allowance (DA) for state employees. Effective from July 1, 2022, this change is designed to support employees amidst rising costs. Below are the essential details of the DA revision, including its scope, beneficiaries, and implementation guidelines.
Overview of DA Revision: Increased Rate from July 1, 2022
The DA revision announced by the Telangana government impacts employees at all levels across various departments and sectors. Starting from July 1, 2022, the Dearness Allowance has been increased from 22.75% to 26.39% of basic pay. This increment aligns with the Revised Pay Scales of 2020, benefiting a wide array of state government employees.
Applicable Employee Groups under the New DA Rates
The DA revision applies to multiple categories of employees, ensuring inclusivity across Telangana’s public sector. The specific groups are:
- Employees of Zilla Parishads, Mandal Parishads, and Gram Panchayats
- Municipalities and Municipal Corporations
- Agricultural Market Committees and Zilla Grandhalaya Samsthas
- Work Charged Establishments
In addition, teaching and non-teaching staff in aided institutions, including aided polytechnics and universities, will also receive the revised DA rates as per the Revised Pay Scales, 2020.
DA Increase for Employees under the 2015 Pay Scale
For employees adhering to the Revised Pay Scales of 2015, the government has revised the DA from 59.196% to 63.912% of basic pay, effective from July 1, 2022. This increase also applies to:
- Local government employees, such as those in Zilla Parishads and Gram Panchayats
- Staff in Municipalities, Municipal Corporations, and Agricultural Market Committees
- Teaching and non-teaching staff of aided institutions and universities
DA Adjustments for UGC and AICTE Pay Scale Employees
The government has also issued specific guidelines regarding DA adjustments for employees under UGC/AICTE Pay Scales:
- 2016 Pay Scales: The DA rate for employees in UGC/AICTE pay scales has been revised from 34% to 38% on basic pay, effective July 1, 2022. This applies to teaching staff in universities, aided degree colleges, medical colleges, and polytechnics.
- 2006 Pay Scales: For employees on UGC/AICTE 2006 pay scales, DA has increased from 203% to 212% of basic pay, effective July 1, 2022.
Revised Allowance for Full-Time and Contingent Employees
For full-time contingent employees whose monthly remuneration was updated from ₹3,850 to ₹6,700 under the Revised Pay Scales of 2010, the DA has been set at 7.704% on basic pay, effective July 14, 2022. This update also reflects a cumulative rate of 155.772%.
Additional Monthly Benefit for Part-Time Assistants and VRAs
The Telangana government has approved an ad-hoc increase of ₹100 per month for Part-Time Assistants and Village Revenue Assistants (VRAs), effective from July 1, 2022. This benefit will be applicable until these employees are absorbed into government service.
Implementation Timeline and Payment of Revised DA
The revised DA payments will commence in November 2024, with the arrears credited to employees’ General Provident Fund (GPF) accounts for the period from July 1, 2022, to October 31, 2024. This credit ensures that employees benefit from the increased DA without delay.
- Employees retiring before March 31, 2025: Arrears will be disbursed in 17 equal installments as they are exempted from GPF contributions during their final four months of service.
- Employees under the Contributory Pension Scheme (CPS): Ten percent of their DA arrears will be allocated to PRAN accounts, with the remainder paid in 17 installments starting in January 2025.
- Full-Time Contingent Employees: For those ineligible for GPF, the arrears will similarly be spread across 17 installments.
Provision for Deceased Employees’ Legal Heirs
In cases where employees have passed away before these orders were issued, their legal heirs are entitled to receive the arrears in a lump sum payment, ensuring support for their families.
Clarification on “Pay” Definition and Funding
The term “Pay” aligns with the standard definition in F.R.9 (21) (a) (i). Additionally, employees of Agricultural Market Committees and the Greater Hyderabad Municipal Corporation will have their DA expenditures covered by their organizations’ funds, as per G.O.Ms.No.9 from January 18, 2010.
Responsibilities for Department Heads and DDOs
The Telangana government mandates that all departments and Heads of Departments ensure strict compliance with these new orders. Relevant officials, including the Director of Treasuries and Accounts, Director of Works Accounts, and the Pay and Accounts Officer in Hyderabad, must issue instructions to subordinate officers to guarantee adherence to the revised DA structure.