The Andhra Pradesh Government has approved a 20% salary hike for employees of Primary Agricultural Credit Societies (PACS) and doubled their gratuity from ₹2 lakh to ₹4 lakh. The announcement was made by Kinjarapu Atchannaidu, Agriculture Minister of Andhra Pradesh, following discussions with employee unions. Additionally, the government has introduced a ₹5 lakh group medical insurance scheme. The decision led to PACS employees withdrawing their proposed strike.

Decision Comes Amid Employee Dissatisfaction

It has been two years since the coalition government led by N. Chandrababu Naidu assumed power in Andhra Pradesh. Prior to elections, several assurances were reportedly made to state government employees, including:

Payment of DA (Dearness Allowance) arrears
Settlement of PRC (Pay Revision Commission) dues
Appointment of a new PRC
Announcement of Interim Relief (IR)

However, many employees have expressed dissatisfaction over delays in fulfilling these commitments. Against this backdrop, the PACS salary revision decision is being seen as a targeted relief measure.

What Has Been Announced?

Salary & Retirement Benefits

20% salary increase for PACS employees
Gratuity doubled from ₹2 lakh to ₹4 lakh

Health Insurance Upgrade

Introduction of ₹5 lakh comprehensive group medical insurance coverage per employee
Replacement of the existing lower insurance cover

The minister also confirmed that a High-Level Committee will be constituted to oversee implementation of the announced benefits.

Strike Withdrawn

Following assurances from the Agriculture Minister, PACS employees withdrew their planned strike. The government has stated that other pending demands will be examined and addressed after due review.

Key Entities

Government of Andhra Pradesh – Executive authority approving salary revision
Kinjarapu Atchannaidu – Agriculture Minister, Government of Andhra Pradesh
N. Chandrababu Naidu – Chief Minister of Andhra Pradesh
Primary Agricultural Credit Societies (PACS) – Rural cooperative credit institutions

Policy & Administrative Implications

The move signals:

Focus on agriculture-linked institutional staff
Attempt to reduce employee unrest
Structured financial reform within cooperative sectors
Gradual implementation approach via committee oversight

While broader state employee demands remain pending, this targeted intervention provides immediate financial relief to PACS workers.

Final Verdict

The Andhra Pradesh government’s decision to grant a 20% salary hike and double gratuity benefits for PACS employees represents a significant welfare measure within the cooperative sector. Though wider employee concerns regarding DA and PRC remain unresolved, this move eases tensions and prevents strike action. The success of the policy will depend on timely implementation and the government’s response to remaining employee demands.