Announcing the decision in a hurriedly called press conference before leaving for Delhi, Rao said the new scales would be implemented from June, exactly a year after the formation of the new state of Telangana.
The decision would cost around Rs 6,500 crore in additional financial burden on the government exchequer, chief minister said. About 300,000 employees, including the teachers and another 180,000 pensioners are expected to be benefited by the pay hike.
The state government is currently spending around Rs 22,000 crore towards salaries and pensions annually and this is expected to go up to Rs 28,500 crore for full year next year, according to the finance department officials. " The government will have to spend an additional amount of Rs 550-Rs 600 crore every month on employee salaries following this decision," a senior government official said.
The government employees were given 27 per cent interim relief by the government of the undivided Andhra Pradesh when N Kiran Kumar Reddy was the chief minister.
During the agitations era prior to the state bifurcation, KCR had promised a good pay hike to the employees as they were in the forefront of the separate statehood movement and also went on a month-long strike in 2013.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
)