The Telangana government has announced that starting with salaries and pensions for May 2026, payable in June, 1.5 per cent of the basic pay or basic pension of state employees and pensioners will be deducted to fund the new Employee Health Care Trust (EHCT). The state will contribute an equal matching amount to the trust, which will support the Employees Health Scheme (EHS).
Chief Secretary K Ramakrishna Rao issued orders directing department heads, district collectors, and drawing and disbursing officers to ensure the deductions are made and credited to the designated health scheme fund. The contributions will be recorded under accounts related to medical and public health purposes.
The orders specify that deductions will apply only once in cases where both spouses are government employees, where one spouse is an employee and the other a pensioner, or where a pensioner receives both service and family pensions. Officers must verify eligibility using official records in the HRMS system to prevent duplicate deductions. If excess deductions occur, refunds will be issued.
All treasury officers, pay and accounts officers, examiners of accounts, finance managers, and other authorized payment authorities have been instructed to ensure the deductions are correctly processed and credited.
This move is part of the state’s effort to strengthen healthcare support for government employees and pensioners by pooling contributions into a dedicated trust. The scheme is designed to provide financial backing for medical and health-related needs while ensuring transparency and accountability in fund management.