Telangana Govt Employees to Get Enhanced PRC Wages From June

Hyderabad: Good news for State government Employees. Staffers and retirees will be able to benefit from a 30% pay boost starting this month. Wages and pensions that were increased in June will be reimbursed in July. On Tuesday, the cabinet approved CM KCR's address in the assembly, which announced the PRC to a total of 9,21,037 persons, including state government workers, contracts, outsourcing, and pensioners. The state administration has instructed the authorities to issue such directives.

In three different methods, the cabinet has decided to tackle the issue.

Beginning July 1, 2018, the Cabinet has agreed to distribute the Notional Benefit for PRC arrears as Monetary Benefits from April 1, 2020, and immediately in cash from April 1, 2021. Pensioners' arrears from April 1, 2020, to May 31, 2021, will be paid in 36 installments, according to the announcement. The Cabinet also resolved to provide KGBV contract employees with 180 days of maternity leave and abolish the HRA limit.

The financial burden is about Rs 1,000 crore.

According to the Finance Ministry, adopting the PRC with a 30% fitment might add an extra Rs 1,000 crore to the state government's monthly expenses. The government has previously exercised such Fitment and stated that it was permissible. It was discovered that 1% fitment in the PRC will need an additional Rs 300 crore per year. This indicates that a 30% fitment will cost Rs 9,000 crore per year.

PRC benefits are now being received by 5.29 lakh people in the state, comprising 2.62 lakh employed individuals, teachers, and 2.67 lakh, retirees. Every month, they would have to pay an extra Rs 750 crore. Furthermore, it is expected that an increase in grant-in-aid, work-charged, and roughly 3 lakh contract and outsourced staff will add another Rs 250 crore to the monthly budget. This means that the state government would have to pay an extra Rs 1,000 crore every month.

What about payments in arrears or cash?

• From April 1, 2020, state government employees will have a virtually enhanced salary. Wage arrears are expected to be reimbursed in different forms from then until March 31, 2021.
• Some of the arrears are paid in GPF (General Provident Fund) and some in cash to employees of the former pension plan.
• All dues will be paid in cash to CPS (Contributory Pension System) workers. It is, however, possible to pay in installments.
• The government order will specify how many installments will be paid.
• The pay was increased in June, plus the arrears for April and May, as a result of the decision to apply for Cash Benefits from April 1 this year.
• The pensioner's arrears will be reimbursed in 36 installments.
• If the administration releases the government order and clear guidance on the PRC, there would be total clarity on pay and arrears.