Telangana’s salary and pension expenditure has ballooned nearly fourfold since the state’s formation in 2014, with the government now spending close to Rs 6,000 crore every month on pay and retirement benefits. Senior officials attribute the steep rise to successive pay revisions, many implemented around election cycles, significantly expanding the state’s fixed financial commitments.
The sharp increase was discussed at a conference on the 16th Finance Commission’s recommendations held at the Centre for Economic and Social Studies on February 25. Officials noted that the monthly outgo, which was approximately ₹1,500 crore in 2014, has surged by nearly 300 percent over the past decade.
Telangana Pay Revisions, DA At 33.67% Drive Wage Surge
Government officials explained that multiple pay revision commissions and regular dearness allowance (DA) hikes have substantially elevated salary levels across departments. The current DA stands at 33.67 percent of basic pay, effective January 2026.
Under the revised pay structure, senior Group 1 officers draw between Rs 80,000 and Rs 1.5 lakh in gross monthly salary, while Group 2 officials earn Rs 60,000 to Rs 1.2 lakh, as per a report on NDTV. Group 3 clerical and technical staff receive Rs 45,000 to Rs 1 lakh, and Group 4 support staff start at Rs 35,000 to Rs 50,000.
Long-serving Class-4 employees in the Greater Hyderabad Municipal Corporation (GHMC) reportedly average around Rs 70,000 per month, with some veterans nearing the Rs 2 lakh mark after decades of service and multiple revisions.
In the power utilities sector, top engineers are said to be drawing salaries of up to Rs 7 lakh per month, reflecting structured pay updates conducted every four years.
Public Sector Salaries Overtake IAS, Governor Pay Levels
Officials observed that remuneration in certain public-sector undertakings has now surpassed that of IAS officers and even the Governor. Employees in power utilities, in particular, have benefited from periodic pay updates, placing them among the highest earners in the state’s public service framework.
Despite the mounting wage bill, Telangana’s expanding revenue base has enabled the government to meet its salary and pension commitments, though occasional minor delays have been reported.
Rs 15 Lakh Crore Decade Expenditure; Budget Session From March 16
During its first ten years, Telangana’s total expenditure touched approximately Rs 15 lakh crore. Of this, nearly Rs 12 lakh crore went toward committed liabilities such as salaries, pensions, and debt servicing. Capital expenditure accounted for only Rs 3 lakh crore, while asset monetisation generated around Rs 15,000 crore, as per reports.
The sustainability of rising fixed costs is expected to dominate discussions in the upcoming Budget Session of the Telangana Legislature, beginning March 16 with an address by Governor Jishnu Dev Varma.
