AP Govt to provide 50% of last salary as pension

The cabinet has already endorsed a bill regarding this matter


The government of Andhra Pradesh has announced that all the state employees will receive a pension equal to 50 per cent of their last salary. The announcement comes after the approval of the guaranteed pension scheme (GPS) on Wednesday, June 7, 2023.

The GPS scheme will be implemented as a replacement for the contributory pension scheme (CPS), which has been a subject of prolonged protests by state government employees. It is also comparable to the old pension scheme, which has been reintroduced by various Congress-governed states like Rajasthan, Chhattisgarh, and Himachal Pradesh.

According to a government statement, the newly approved pension scheme will incorporate a gradual increase in the dearness allowance (DA) for government employees. This will guarantee the payment of a 50 per cent pension post-retirement. The cabinet has also endorsed a bill regarding this matter.

In addition to GPS, the cabinet has also announced some other measures in an effort to gain support from government employees ahead of the 2024 state assembly elections and the national polls.

Firstly, it entails regularising all 10,000 contractual employees who have completed five years of service prior to the bifurcation of Andhra Pradesh into Andhra and Telangana, which took place on June 2, 2014.

Additionally, the cabinet has granted approval for 6,840 fresh positions across various departments, along with endorsing the government’s resolution to eliminate Vidya Vidhan Parishath and classify its 14,653 employees as government employees, who will be transferred to the directorate of secondary health. The statement further mentioned that the cabinet has sanctioned 2,118 positions for the newly established medical colleges.

Moreover, all the government employees working in district headquarters, will now get an increased house rent allowance of 16 per cent which was 12 per cent earlier. Additionally, they will also get a 2.73 per cent rise in the DA. Furthermore, the cabinet has made other decisions concerning the creation of new positions in various departments and the establishment of junior colleges in every block of the state.

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