The Telangana government has announced a 2.1% increase in Dearness Allowance (DA) for employees of the Telangana State Road Transport Corporation (TGSRTC). The decision was announced by Transport Minister Ponnam Prabhakar on Friday and will be implemented with retrospective effect from Jan. 1, 2026. With this revision, the total DA for RTC employees will rise to 52.8%.
The hike is expected to benefit a large number of RTC employees across the state. At the same time, it will result in an additional financial burden of Rs 2.82 crore per month on the TGSRTC.
Speaking after an internal meeting, Prabhakar said that the government has planned a phased approach for clearing the arrears. He stated that the dues for the past three months will be paid through supplementary bills over the next three months.
This is the second DA revision within a year. In July 2025, the government had increased the DA by 2.1%, raising it from 48.6% to 50.7%. The latest increase continues the upward revision in employee compensation following the implementation of the Revised Pay Scales (RPS-2017) in May 2024.
Apart from the DA hike, the minister also chaired a review meeting with Regional Managers to discuss the future plans for strengthening TGSRTC. During the meeting, he stressed that the government is focused on “safeguarding the RTC as an institution” while also working towards improving services for passengers.
The government outlined several initiatives during the meeting. These include plans to recruit new staff to improve operations, steps to procure new buses to upgrade the existing fleet, and measures to enhance infrastructure and healthcare facilities for employees. It was also stated that pending developmental works at depots would be expedited.
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TGSRTC Managing Director Y. Nagireddy welcomed the decision and said that employee unions had been waiting for the announcement. He stated, “The revised DA increases employee confidence and shows the government's attention towards staff welfare along with efforts to improve the corporation's financial condition.”
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