Amaravati, October 19, 2025: In a festive gesture ahead of Diwali, Andhra Pradesh Chief Minister N. Chandrababu Naidu has announced a comprehensive set of benefits for state government employees, including the release of one installment of the Dearness Allowance (DA) from November 1. The move is aimed at providing financial relief and boosting morale among government staff while reinforcing the administration’s commitment to employee welfare despite ongoing fiscal challenges.

In an official release late on Saturday, Naidu detailed that the state government will incur an expenditure of ₹160 crore per month toward the Dearness Allowance for employees. This payment forms a part of a broader Diwali festival package designed to ease financial pressure and acknowledge the contribution of government personnel to the functioning of the state.

Dearness Allowance and Leave Payments

The chief minister confirmed that one installment of the DA would be released from November 1, ensuring that employees receive timely financial support during the festive season. Additionally, Naidu announced the settlement of one portion of the police department’s earned leave payments, which will be disbursed in two equal installments amounting to ₹105 crore. These steps are expected to bring significant relief to employees in critical departments, particularly those who rely on accumulated leave payments for personal and family needs.

Health Insurance and Child Care Benefits

As part of the Diwali package, Naidu emphasized improvements to the health insurance scheme for government employees. The Chief Minister stated that the scheme would be streamlined within 60 days to ensure more efficient access to medical benefits. Moreover, a new provision allows employees to avail of child care leave for up to 180 days before retirement. This move is being widely seen as a progressive step to support employees balancing work and family responsibilities, reflecting a more employee-centric approach by the state government.

Property Tax Waivers and Promotions

Another notable announcement concerned property tax exemptions. The state government will waive property tax for buildings owned by government employees’ association offices, providing both financial relief and recognition of employee-led organizational structures. Additionally, promotions for employees of the Andhra Pradesh Road Transport Corporation (APSRTC) have been cleared as part of the Diwali gift, further motivating staff in key public service sectors.

Naidu also announced plans to redesignate certain posts by changing their nomenclature, aimed at aligning job titles with contemporary administrative requirements and enhancing career progression pathways for employees.

Pay Revision and Pending Dues

Addressing employee concerns regarding the Pay Revision Commission, Naidu urged associations to trust the government to resolve these issues, assuring that an announcement would be made soon. The Chief Minister highlighted that, despite facing a financial crisis, the state government had already released ₹15,921 crore in dues to employees. Furthermore, pending dues amounting to ₹23,556 crore from the previous YSR Congress Party regime have been uploaded into the system for eventual settlement.

Naidu contrasted Andhra Pradesh’s employee expenditure with neighboring states, noting that the state spends ₹51,452 crore annually, accounting for 91% on establishments. This figure is significantly higher than neighboring states—Telangana at 38%, Tamil Nadu at 42%, and Karnataka at 39%—underscoring the administration’s commitment to employee welfare despite fiscal constraints.

Timely Salary Payments and Administrative Oversight

Highlighting operational efficiency, the Chief Minister stated that salaries are now being disbursed on the first day of every month. In addition, a Cabinet sub-committee has been established to address employee-related issues promptly and ensure that grievances are resolved systematically. This institutional mechanism is expected to provide a structured platform for dialogue between government employees and the administration, enhancing transparency and accountability.

Overall Impact of the Diwali Bonanza

The Diwali package announced by Naidu is being perceived as a morale booster for the state’s workforce. By combining financial incentives, health benefits, child care provisions, property tax waivers, and promotions, the government aims to acknowledge the crucial role of employees in public administration. Analysts note that this multi-pronged approach not only addresses immediate financial needs but also reinforces long-term employee engagement and satisfaction.

The announcement comes at a time when state governments across India are under increasing pressure to balance fiscal discipline with employee welfare. Andhra Pradesh’s proactive measures, including prompt salary payments, settlement of pending dues, and the planned implementation of the Pay Revision Commission recommendations, position the state as one of the more employee-conscious administrations in the region.

As the Diwali festival approaches, government employees in Andhra Pradesh are set to benefit from a combination of immediate financial relief and structural reforms, which collectively aim to improve their quality of life, enhance job satisfaction, and recognize their contributions to the state’s development.

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