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Telangana News Updated Dec 31, 2025

Telangana Clears Rs 713 Crore in December Employee Bills, Continues 5-Month Streak

The Telangana government has released Rs 713 crore to clear pending bills for state employees for the month of December, marking the fifth consecutive month of such payments. Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka directed the release, which covers gratuity, General Provident Fund, surrender leave encashment, and advances. This consistent action follows a June Cabinet decision to clear all employee arrears as of January 2023 within a 28-month period, allocating at least Rs 700 crore monthly. The move aims to address long-standing employee demands and avert potential agitation over pending issues.

Telangana releases Rs 713 crore to clear pending employee bills for December

Hyderabad, Dec 31

The Telangana government has released Rs 713 crore towards pending bills payable to government employees in the state for December.

Deputy Chief Minister Mallu Bhatti Vikramarka, who is also the Finance Minister, issued the orders on Wednesday.

Following the Deputy Chief Minister's directions, officials of the Finance Department released bills amounting to Rs 713 crore related to December.

This is the fifth consecutive month that the government has issued the funds to clear the pending bills.

The state government earlier assured employee unions that an amount of Rs 700 crore would be released every month.

By the end of June, the government released Rs 183 crore. Thereafter, from August onwards, a minimum of Rs 700 crore has been consistently released every month.

The pending bills related to employees' gratuity, General Provident Fund (GPF), surrender leave encashment, and advances.

It was in the first week of June that the State Cabinet decided to clear pending arrears of employees as on January 1, 2023, in 28 months. The Cabinet sanctioned at least Rs 700 crore every month to clear pending bills of employees.

The decision came after the talks the employees' union had with the Cabinet sub-committee headed by the Deputy Chief Minister.

The employees had earlier threatened agitation to press their 57 demands.

The Cabinet had also decided to set up a trust for the government health insurance scheme with the Chief Secretary as its head and employee union representatives as members.

Under the scheme, each employee will contribute Rs 500 monthly, matched by an equal contribution from the state government.

The Telangana Employees' Joint Action Committee (JAC), early this month, called on the government to implement all pending promises to employees.

The JAC had called for the immediate implementation of the health scheme and issuance of employee health cards.

— IANS

Reader Comments

Priya S

It's a positive step, but why did it take threats of agitation for the government to act? Employees' gratuity and PF are their hard-earned money, not a favour. The 28-month timeline to clear arrears from Jan 2023 still feels too long for those waiting.

Rohit P

Good governance is about keeping promises. Releasing Rs 700 crore consistently is a welcome change. The matched contribution health scheme (Rs 500 from employee & govt) is also a smart move if implemented transparently. Hope other states learn from this.

Anjali F

As a daughter of a state government employee, I know the stress these pending bills cause at home. Timely salary and benefits are crucial. Kudos to the unions for pushing and the government for listening. Hope the health cards are issued quickly! 🙏

Michael C

Interesting to see a systematic approach to clearing arrears. The trust model for health insurance with employee representation is a good practice for accountability. Consistency over five months is key – hope it continues for the full 28-month period.

Karthik V

This is how a welfare state should function. Clearing GPF, gratuity, and leave encashment is basic financial justice for employees who serve the public. Now, the focus should be on implementing all 57 demands, not just the financial ones. Jai Telangana!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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