Hyderabad:
Telangana’s salary and pension burden has risen sharply over the past decade, with the state now spending nearly Rs 6,000 crore every month on salaries and pensions — almost four times the expenditure at the time of its formation in 2014, according to senior government officials.
The surge comes amid disclosures that top government engineers in state power utilities draw salaries of up to Rs 7 lakh per month, while senior sanitation workers in the Greater Hyderabad Municipal Corporation (GHMC) can earn close to Rs 2 lakh a month after long years of service and periodic pay revisions.
Officials said the rising wage bill is largely due to successive pay revisions, often announced around election cycles, which have significantly increased fixed expenditure.
Among the highest-paid officials are chief engineers in state-run power utilities such as Telangana State Power Generation Corporation Limited (TGGENCO), Telangana State Transmission Corporation Limited (TGTRANSCO), Telangana Southern Power Distribution Company Limited, and Telangana Northern Power Distribution Company Limited. Periodic four-year pay revisions in these entities have pushed senior-level monthly salaries to nearly Rs 7 lakh.
In GHMC, which administers urban Hyderabad, regularised sanitation workers earn an average of about Rs 70,000 per month. Entry-level municipal employees draw around Rs 28,000, while senior Class-IV workers with long service records can earn up to Rs 2 lakh monthly.
Salary Structure
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Dearness Allowance (DA): 33.67% of basic pay (latest revision effective January 2026).
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Group 1 (Senior Officers): Basic Rs 54,000–Rs 1,33,000; gross typically Rs 80,000–Rs 1.5 lakh and above.
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Group 2 (Mid-Level): Basic Rs 38,890–Rs 1,18,230; gross Rs 60,000–Rs 1.2 lakh and above.
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Group 3 (Clerical/Technical): Basic Rs 32,810–Rs 96,890; gross Rs 45,000–Rs 1 lakh and above.
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Group 4 (Support Staff): Basic Rs 24,280–Rs 72,850; in-hand Rs 35,000–Rs 50,000 at entry level.
Most employees are covered under the National Pension System (NPS), adding to the state’s long-term financial liabilities.
Despite the heavy wage burden, officials said rising revenues have so far enabled the government to release salaries on time or with only minor delays.
A recent report by the Comptroller and Auditor General (CAG) revealed that in 2023–24, nearly 45% of the state’s revenue was spent on salaries, pensions, and interest payments.
However, officials maintain that Telangana’s economy continues to expand steadily, with Gross State Domestic Product (GSDP) growth above 10% and per capita income among the highest in India.
According to the Telangana Budget 2025–26, revenue receipts are estimated at Rs 2.30 lakh crore, while revenue expenditure stands at Rs 2.27 lakh crore out of a total budget outlay of approximately Rs 3.05 lakh crore. The fiscal plan projects a modest revenue surplus of Rs 2,738 crore.
Major Budget Allocations:
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Education: Rs 23,108 crore
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Health, Medical & Family Welfare: Rs 12,393 crore
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SC/ST Welfare: Approximately Rs 57,401 crore
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Agriculture & Rural Development: Rs 24,439 crore
(Agency)
