Telangana Government Allocates ₹745 Crore to Settle Employee Dues

Financial Support for Government Employees

Hyderabad, Feb 27: The Telangana state government has disbursed ₹745 crore to address outstanding payments owed to its employees.

Following the instructions of Deputy Chief Minister Mallu Bhatti Vikramarka, who also serves as the Finance Minister, the Finance Department released these funds on Friday.

This marks the seventh consecutive month that the government has allocated funds to settle these pending payments.

In line with commitments made to employee unions, the government has been providing at least ₹700 crore each month since June of the previous year to clear outstanding dues.

Last month, the government allocated ₹720 crore, while in December 2025, ₹713 crore was released by the Finance Department.

The state had assured employee unions that a monthly amount of ₹700 crore would be made available to settle dues that accumulated during the previous administration.

By the end of June 2025, ₹183 crore had been released, and from August onward, the government has consistently allocated a minimum of ₹700 crore each month.

The pending payments include gratuity, General Provident Fund (GPF), leave encashment, and advances.

In early June, the State Cabinet decided to address the pending arrears of employees as of January 1, 2023, over a period of 28 months, sanctioning at least ₹700 crore monthly for this purpose.

This decision followed discussions between employee unions and a Cabinet sub-committee led by the Deputy Chief Minister.

Previously, employees had threatened to protest to advocate for their 57 demands.

Additionally, the Telangana Cabinet recently approved an accident insurance scheme and a cashless health initiative for all government employees and pensioners.

Employees will not be required to pay any premiums, and the government will not incur any financial burden for the insurance scheme, which will benefit 5.19 lakh regular employees and 2.38 lakh pensioners, totaling 7.57 lakh beneficiaries.

In the event of accidental death, the scheme will provide ₹1.2 crore in compensation, while for natural deaths (up to 60 years), ₹10 lakh will be paid in addition to regular benefits.

The Cabinet also approved the Cashless Employee Health Scheme (EHS), fulfilling a long-standing demand from employees. This scheme will cover 3.56 lakh employees, 2.88 lakh pensioners, and their dependent family members, amounting to 17.07 lakh beneficiaries.

All treatments will be cashless in government hospitals and 652 empanelled private hospitals, covering 1,998 medical procedures.