Hyderabad: The Revanth Reddy government is likely to announce a Pay Revision Commission (PRC) package for Telangana government employees and pensioners as a New Year gift, according to information from government circles. The state is considering implementing the PRC report for serving and retired employees. An internal exercise is under way to implement it from the start of the 2027-28 financial year in April.
Government sources said the government will obtain the report, hold discussions and consultations, and then announce the PRC as a New Year gift. As it is mid-November, the government plans to receive the report by January. It will then form a committee to study the report and prepare its own report. The government is likely to announce the fitment after that.
The notification for two graduate MLC elections will come after the second week of February 2027. The government cannot announce the PRC once the election code comes into force, so it is reportedly preparing to announce it before then. The votes of employees, outsourcing employees, retired employees and their family members will be key in the graduate constituencies.
The ruling party reportedly expects that winning these votes and keeping its promise to employees can happen together. It estimates that this approach will help it win both graduate seats easily. Some ruling party leaders and employee union leaders recalled that then Chief Minister KCR used the same approach in 2021. They said the Congress is preparing to follow the same strategy, which would please employees and relieve the party of some pressure before the elections.
The government may allocate funds for the PRC in the 2027-28 budget. The KCR government had earlier announced a 5 percent interim relief (IR) related to the PRC. The Revanth Reddy government must now announce the fitment. Each 1 percent of fitment costs up to Rs 200 crore, and the government must keep this in mind when it announces the figure.
Employee unions seek 50 percent fitment
Employee unions want a fitment of up to 50 percent. The government is likely to consider its financial position before announcing the figure and may also appeal to employees. It has already announced two DAs as part of the PRC, which has calmed employees to some extent. Employees expect the government to implement the PRC soon. Because the government has the same plan, they have reportedly prepared themselves mentally.
The Finance Department has identified 5.20 lakh employees, including those in public sector undertakings, and 2.94 lakh pensioners in the state. The government pays Rs 49,461 crore a year to employees and Rs 13,110 crore a year in pensions. The Finance Department says this amounts to 30.67 percent of the total state budget. The amount is likely to rise if the government implements the PRC.