Naidu clears 12th PRC, two pending DAs from October, and extra pension for elderly — ₹2,880 crore a year

Chief Minister N. Chandrababu Naidu on 5 September 2026 announced a package for government employees and pensioners after discussions with representatives of 11 unions at his Undavalli camp office in Guntur district. The measures include constitution of the 12th Pay Revision Commission, release of two pending dearness allowances, and enhanced benefits for elderly pensioners. The additional annual expenditure is locked at about ₹2,880 crore. Union leaders expressed satisfaction in the public record of the meeting.
The government agreed to release the dearness allowances due from 1 July 2024 and 1 January 2025, with both DAs to be paid from 1 October 2026. Surrender leave dues pertaining to 2022 are to be credited to employees’ accounts by Sankranti in 2027. Police personnel will receive one additional surrender leave during the Dasara festival.
An additional quantum of pension will start from January 2027: pensioners aged above 70 years will receive an additional 10 percent, and those above 75 years an additional 15 percent. The Employees Health Scheme will be streamlined, with the government agreeing to make monthly payments to the NTR Vaidya Seva Trust from the following month.
Mr Naidu described employees as an integral part of government and assured support in resolving issues. The announcements sit on a claimed 27-month ledger: clearance of long-pending CPS contributions, APGLI, GIS and medical reimbursement claims including old arrears; clearance of pending GPF, gratuity and commutation dues; leave encashment arrears for retired employees cleared up to June 2025; additional surrender leave arrears for police; salaries and pensions paid on the first of every month; Old Pension Scheme extended to about 11,000 eligible CPS employees whose recruitment notifications predated 1 September 2004 but who joined later; retirement age for eligible regular employees of State PSUs, corporations and societies raised from 60 to 62; regularisation restarted for about 8,000 eligible contract employees in 2026; Child Care Leave age-cap removed and the “fewer than two surviving children” condition for 180 days of maternity leave scrapped; e-DPC for pending promotions; and a Retirement Benefits Processing System.
Money style stays ₹ plus numeral — ₹2,880 crore — never a spelled-out crore without the symbol. This cutting records the Undavalli package as announced; it does not invent the names of PRC chairpersons not yet notified, or treat union satisfaction as a closed industrial dispute forever. For the edition’s must-cover on the Chief Minister, the locked core is PRC-12, two DAs from October, elderly pension quantum from January 2027, and monthly EHS flows to NTR Vaidya Seva.
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