Telangana Ministers to Take 50% Pay Cut to Clear Pension Backlog

The Telangana government has decided to cut the salaries of its ministers by 50% to mobilise resources to clear long-pending retirement dues, officials said Thursday.

The decision was taken at a cabinet meeting chaired by Chief Minister A. Revanth Reddy. Information and Public Relations Minister Ponguleti Srinivas Reddy said the move was voluntary and could be extended to other elected representatives.

“All the ministers have voluntarily resolved to cut down their salaries by 50%. Similarly, all the public representatives would forego 50% of their salaries, if necessary, towards clearing the retirement benefits due to retired employees,” he said, according to reports by Hindustan Times and other media outlets.

The cabinet also set a 100-day timeline to initiate arrangements for clearing pending retirement dues and announced the formation of a sub-committee on resource mobilisation. The panel will engage with employee unions, teachers and pensioners to streamline the process.

Officials said the state faces liabilities of about ₹6,200 crore related to serving employees and nearly ₹8,000 crore owed to retired personnel, taking the total burden to around ₹14,000 crore.

The cabinet expressed concern over delays in the disbursement of retirement benefits, noting that pensioners and their families have been facing financial hardship.

“With the increase in retirement age and delays in disbursing retirement benefits, pensioners and their families are facing significant hardship. Retired employees should not be forced to run from office to office for their dues,” the minister said.

The government also flagged that these dues have accumulated over the past decade, adding that no such arrears existed at the time of Telangana’s formation in 2014. Alongside the salary cuts, the state plans to explore additional measures to mobilise resources and ensure timely payment of dues.

The move comes days after Himachal Pradesh announced similar salary reductions for its chief minister and cabinet amid fiscal pressures.