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Telangana Govt Issues Employee Health Scheme Order – 1.5% Salary Deduction

TELANGANA EMPLOYEE HEALTH SCHEME – 1.5% DEDUCTION ORDER

Government of Telangana, Finance (TFR) Department – G.O.MS.No.79 Dated 29.06.2026

Reference G.O.MS.No.79

Issuing Authority Finance (TFR) Department, Govt. of Telangana

Date 29.06.2026

Subject Employees Health Scheme – Contribution Deduction

Deduction Rate

1.5%

Of Basic Pay / Basic Pension

Effective From

May 2026

Payable in June 2026 & onwards

Coverage

Employees & Pensioners

Along with family members & eligible dependents

Key Order Directives

Deduction Order: All Heads of Departments, District Collectors, and Drawing and Disbursing Officers shall deduct 1.5% of Basic Pay/Basic Pension towards contribution to the Employees Health Scheme (EHS) Fund from salaries and pensions for the month of May, 2026, payable in June, 2026, and onwards.
Head of Account: The deducted amount shall be credited to the EHS Fund under the head: 8229 - Development and Welfare Funds > 102 - Development Funds for Medical and Public Health Purposes > 01 - Employee Health Scheme Fund.
Deduction Restriction: Contribution shall be restricted to one employee/pensioner only in cases where both spouses are State Government employees/pensioners, or where a pensioner draws both Service Pension and Family Pension.
Verification Required: Drawing and Disbursing Officers shall verify eligibility based on documentary evidence and record spouse's employment/pension particulars in the IFMIS-HRMS system to avoid duplicate deduction.
Refund of Excess: Where deductions have already been made in duplicate, the excess amount shall be refunded.
Implementation Authorities: The Director of Treasuries and Accounts, Director of Works Accounts, Director of State Audit, Pay and Accounts Officer, Hyderabad, and all Heads of Departments shall take necessary further action.

Important Points to Note

Scheme Background: The Employee Health Care Trust (EHCT) has been formed for implementation of the Employees Health Scheme with equal matching contribution by the Government.
Applicability: The deduction applies to all Government employees and Pensioners along with their family members and eligible dependents.
Duplicate Deduction Prevention: In cases of both spouses being Government employees/pensioners, only one deduction shall be made after verification.
Online Availability: These instructions are available on the Telangana Government Website: http://www.goir.telangana.gov.in

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Frequently Asked Questions

What is G.O.MS.No.79 dated 29.06.2026 about?

It orders a 1.5% deduction from Basic Pay/Basic Pension towards the Employees Health Scheme (EHS) Fund for all Government employees and pensioners in Telangana, effective from May 2026 salaries payable in June 2026.

What is the deduction rate for the Employee Health Scheme?

The deduction rate is 1.5% of Basic Pay for serving employees and 1.5% of Basic Pension for pensioners.

When does the deduction start?

The deduction starts from the salary/pension for the month of May, 2026, which is payable in the month of June, 2026, and continues onwards.

What happens if both husband and wife are Government employees?

Deduction shall be restricted to only one employee. The Drawing and Disbursing Officer shall verify eligibility and record spouse details in the IFMIS-HRMS system to prevent duplicate deduction.

What is the Head of Account for crediting the deduction?

The amount shall be credited to 8229 - Development and Welfare Funds > 102 - Development Funds for Medical and Public Health Purposes > 01 - Employee Health Scheme Fund.