Hyderabad: The state government announced an RTC DA hike of 2.1% for employees, raising the allowance to 52.8% with effect from January 1, 2026.
Transport Minister Ponnam Prabhakar said the Dearness Allowance increased from 50.7% to 52.8%. He added that the RTC DA hike would place an additional monthly burden of ₹2.82 crore on the corporation.
He said the government would clear arrears for the past three months through supplementary bills. These payments will be released in three instalments over the coming months.
Earlier, the government increased DA by 2.1% in July 2025. It raised the rate from 48.6% to 50.7%. Therefore, the latest RTC DA hike takes the total allowance to 52.8%.
RTC DA hike to benefit employees from January
The minister said no DA arrears remain pending after the implementation of RPS-2017 in May 2024. He added that the government cleared all previous dues.
Ponnam Prabhakar and RTC Managing Director Y. Nagireddy conveyed greetings to employees following the announcement. Senior officials also thanked the minister for approving the RTC DA hike.
During a meeting with Regional Managers, the minister reviewed ongoing projects and development works. He said the corporation already released the final pending DA instalment.
He reiterated that arrears from January would be paid in three phases. Meanwhile, officials will monitor the disbursement process.
The minister said the government focused on protecting RTC, ensuring employee welfare, and improving passenger services. He added that these priorities guide current policies.
RTC MD Nagireddy said employees had awaited the RTC DA hike for a long time. He said worker welfare remains a key priority for the organisation.