Hyderabad: 10 April Posted at 12:53 PM IST
The Telangana government has announced a 2.1% increase in Dearness Allowance (DA) for RTC employees. The decision was made by Transport Minister Ponnam Prabhakar and will come into effect from January 1, 2026. This move is expected to benefit thousands of employees across the state.
With this revision, the DA has increased from 50.7% to 52.8%. The government also confirmed that arrears for the past three months will be cleared in installments over the next three months.
Officials stated that the DA hike will result in an additional financial burden of ₹2.82 crore per month on the Telangana State Road Transport Corporation (RTC). Despite the financial impact, the government emphasized its commitment to employee welfare.
This is the second DA hike in a short span. Earlier, in July 2025, the DA was increased by 2.1%, raising it from 48.6% to 50.7%. With the latest revision, the DA has now reached 52.8%.
Authorities also confirmed that after the implementation of RPS–2017 in May 2024, there are no pending DA arrears for employees. The current revision clears the remaining dues.
Transport Minister Ponnam Prabhakar, along with RTC Managing Director V. Nagi Reddy, congratulated employees on the announcement. Senior officials appreciated the government’s decision and highlighted its positive impact on morale.
During a review meeting with Regional Managers, the minister instructed officials to speed up pending works and focus on development initiatives. He reiterated that strengthening RTC remains a priority.
Key initiatives discussed include hospital upgrades for employee healthcare, compassionate appointments, reinstatement of certain employees, fresh recruitments, and procurement of new buses.
The minister emphasized that RTC is the lifeline of Telangana and must be further strengthened to improve public transport services and passenger convenience.
RTC MD V. Nagi Reddy expressed satisfaction over the announcement, noting that employees had been waiting for this decision for a long time. He reiterated that employee welfare remains a top priority.

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