Rs 745 crore cleared: Is Telangana closing pending employee bills?

Hyderabad: The Telangana government has released Rs 745 crore to clear pending bills of government employees, marking the seventh consecutive month of fund allocation towards arrears.

The Finance Department issued the funds at the direction of Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka. The move is part of the state government’s commitment to employee unions to clear accumulated dues in a phased manner.

Rs 700 crore minimum released monthly since June

The government has been sanctioning not less than Rs 700 crore every month since June last year to settle pending employee bills. Last month, Rs 720 crore was released, while in December 2025, bills worth Rs 713 crore were cleared.

By the end of June 2025, Rs 183 crore had been released. From August onwards, the monthly allocation has consistently remained at or above Rs 700 crore.

The pending dues relate to gratuity payments, General Provident Fund (GPF), surrender leave encashment and various employee advances. These arrears had accumulated during the previous government’s tenure.

Also Read| Telangana salary shocker: Sweepers to earn ₹2 lakh, engineers ₹7 lakh monthly!

Cabinet decision to clear arrears in 28 months

In early June, the State Cabinet decided to clear pending arrears of government employees as of January 1, 2023, over a period of 28 months. The Cabinet approved a structured plan to release at least Rs 700 crore every month to settle the outstanding bills.

The decision followed discussions between employee unions and a Cabinet sub-committee led by the Deputy Chief Minister. Employee unions had earlier warned of agitation to press for fulfilment of 57 demands.

Accident insurance and cashless health scheme approved

Earlier this week, the Telangana Cabinet also approved an accident insurance scheme and a cashless Employee Health Scheme (EHS) for government staff and pensioners.

The accident insurance scheme will cover 5.19 lakh regular employees and 2.38 lakh pensioners, benefiting a total of 7.57 lakh individuals. Under the scheme, Rs 1.2 crore will be paid in the event of accidental death. In cases of natural death up to the age of 60, Rs 10 lakh will be provided in addition to regular service benefits. The scheme will be implemented through banks, with no premium payable by employees.

Also Read| Gen Z on salary: Are higher incomes reshaping India’s spending?

The cashless health scheme will cover 3.56 lakh employees, 2.88 lakh pensioners and their dependent family members, benefiting approximately 17.07 lakh people. Treatment will be fully cashless in all government hospitals and 652 empanelled private hospitals, covering 1,998 medical procedures.

The Telangana government said the measures aim to strengthen employee welfare while addressing long-pending financial liabilities.

IANS