In a move that is expected to benefit thousands of state transport workers, Transport Minister for the state of Telangana, Ponnam Prabhakar on Friday announced a 2.1% hike in Dearness Allowance (DA) for Telangana State Road Transport Corporation (TGSRTC) employees. The decision, effective retrospectively from January 1, 2026, will push the total DA to 52.8%.

Financial impact and arrears disbursement

The 2.1% hike is expected to exert an additional monthly financial burden of ₹2.82 crore on the TGSRTC exchequer. To manage the cash flow, the government has outlined a phased disbursement plan for the accumulated dues.

Speaking to reporters after an internal meeting, Prabhakar said that the arrears for the past three months will be paid by means of supplementary bills spread over the next three months.

The DA progression

This is the second such revision in the last year. In July 2025, the state government had increased the DA by 2.1%, taking it from 48.6% to 50.7%. The latest hike marks a steady upward trajectory in employee compensation following the implementation of the Revised Pay Scales (RPS-2017) in May 2024.

ALSO READ

Institutional Strengthening and Welfare

Beyond the DA announcement, the Minister chaired a review meeting with Regional Managers to discuss the development roadmap for TGSRTC. He emphasized that the government remains committed to “protecting the RTC as an institution” while simultaneously improving passenger convenience.

ALSO READ

Key initiatives highlighted by the Ministry include:

Recruitment Drive: Plans for new recruitments to optimize operations.

Fleet Expansion: Expedited procurement of new buses to modernize the aging fleet.

Infrastructure & Healthcare: Upgrading healthcare facilities for employees and speeding up pending developmental tasks at depots.

TGSRTC Managing Director Y. Nagireddy welcomed the decision, noting that the employee unions had been eagerly awaiting the announcement. “The revised DA not only boosts morale but also reflects the government’s focus on employee welfare alongside the corporation’s financial recovery,” Nagireddy said.