Hyderabad: The salary and pension burden in Telangana has increased sharply since its formation in 2014, with monthly government spending on pay and pensions reaching about ₹6,000 crore.

Officials say successive pay revisions, often linked to electoral and administrative cycles, have contributed to the rise in fixed expenditure.

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Senior engineers in state power utilities such as Telangana State Power Generation Corporation Limited and Telangana State Transmission Corporation Limited reportedly earn up to ₹7 lakh per month at top levels after periodic four-year revisions.

Distribution companies including Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited also follow similar revision structures.

Municipal workers’ earnings rise after long service

In the Greater Hyderabad Municipal Corporation, sanitation workers who have been regularised can earn around ₹70,000 per month on average.

Senior Class-4 municipal employees with long service and multiple revisions may draw close to ₹2 lakh monthly.

Entry-level municipal support staff typically receive in-hand pay of about ₹35,000–₹50,000.

Officials attribute the high wages partly to accumulated revisions over decades of service.

Salary structure and fiscal impact

Current Dearness Allowance stands at about 33.67% of basic pay (revision effective January 2026).

Government employee groups are broadly structured as:

  • Group 1 senior officers: basic ₹54,000–₹1,33,000; gross pay often ₹80,000–₹1.5 lakh+
  • Group 2 mid-level staff: gross pay around ₹60,000–₹1.2 lakh+
  • Group 3 clerical and technical staff: gross pay ₹45,000–₹1 lakh
  • Group 4 support staff: entry in-hand pay ₹35,000–₹50,000

Most employees are covered under the National Pension System, creating long-term fiscal liabilities.

Revenue and expenditure pressures

Audit data from the Comptroller and Auditor General of India shows that about 45% of Telangana’s revenue in 2023–24 was spent on salaries, pensions and interest payments.

Despite the heavy wage burden, state officials say economic growth has helped maintain timely salary payments.

The state’s gross state domestic product growth has remained above 10%, with relatively high per capita income compared to many other Indian states.

The Telangana Budget 2025–26 projected revenue receipts of about ₹2.30 lakh crore against revenue expenditure of roughly ₹2.27 lakh crore.

Major allocations include education (₹23,108 crore), health (₹12,393 crore), SC/ST welfare (₹57,401 crore) and agriculture and rural development (₹24,439 crore).