World · India Bureau
Andhra Pradesh hikes dearness allowance to 41.86 percent
Andhra Pradesh has increased dearness allowance for its employees from 37.31 percent to 41.86 percent of basic pay, effective from September salaries. The state will distribute accumulated arrears in phases through 2028.
LSN India ·
The Andhra Pradesh government has announced a significant increase in dearness allowance (DA) for its workforce through two government orders issued recently. The DA has been raised from the existing 37.31 percent to 41.86 percent of basic pay, translating to an increase of 4.55 percentage points.
The enhanced rate will be applicable from September salaries onwards, providing immediate financial relief to state employees. The increase brings the DA in line with revised cost-of-living adjustments, a practice followed periodically across Indian states to help employees cope with inflation.
Employees are set to receive arrear payments for the period between the previous DA rate and the new rate, with amounts varying based on individual salary structures. These arrears, ranging from approximately ₹1.23 lakh to ₹11.07 lakh depending on seniority and salary grade, will not be disbursed in a lump sum. Instead, the state government has structured the payment in phases, with full settlement expected by 2028.
This phased approach to arrear distribution is intended to manage the fiscal impact on the state exchequer while ensuring employees receive their due compensation. The measure affects a substantial portion of Andhra Pradesh's government workforce, including administrative staff, teachers, and other state employees across various departments and institutions.