EHS Scheme Double Deductions Refund Procedure
A circular memo has recently been issued by the Finance Department through Special Secretary to the Government, Shikhta Patnaik. This memo addresses issues related to claiming double deductions and stopping further salary deductions under the Employee Health Scheme (EHS). Deductions have been occurring in salaries for past months, and this guideline explains how to claim refunds and halt future extra cuts.
Telangana EHS Double Deduction Refund Circular & Procedure
Last Updated: September 10, 2026
Quick Summary & Key Takeaways
- Applicability: Government employees, service pensioners, and family pensioners with dual 1.5% EHS deductions.
- Action Required: Submit a formal application through your DDO/Treasury Officer.
- System Integration: DDOs will process claims and halt future cuts using the IFMIS portal option.
- Governing Order: G.O.MS.No.79, Finance (TFR) Department, dated 29th June 2026 — sets the 1.5% deduction, the single-deduction restriction, and the Employee Health Care Trust (EHCT) framework.
- Separate Issue — Institutional Exemption: Grant-in-Aid institutions like Telangana Vaidya Vidhana Parishad (TVVP) are not covered under EHS at all; wrongly deducted amounts are being refunded and future deductions stopped.
On this page
- 1. What is Double EHS Deduction?
- 2. Who is Eligible to Claim?
- 3. Cases Involving Spouse (Both Employees)
- 4. One Spouse Employee, Other a Pensioner
- 5. Service Pensioners Cases
- 6. Family Pensioners Cases
- 7. TVVP & Grant-in-Aid Institutions: Not Covered Under EHS
- 8. Step-by-Step Procedure
- 9. Documents Required
- 10. Role of DDOs
- 11. Refund Mechanism
- 12. Important Points
1. What is Double EHS Deduction?
As per the official order, every government employee and pensioner in Telangana contributes 1.5% of their Basic Pay or Basic Pension every month towards the EHS Fund. This deduction has been effective from the salary of May 2026, paid out in June 2026, and continues every month after that.
During the implementation of the scheme, it was noticed that in certain cases, this 1.5% was being deducted from more than one source within the same household, leading to a double contribution or double deduction from basic pay or basic pension.
2. Who is Eligible to Claim the Refund?
All regular government employees, service pensioners, and family pensioners whose contributions have been deducted twice (e.g., 1.5% deduction applied multiple times within the same household or source) are eligible to claim a refund.
3. Cases Involving Spouse (Both Government Employees)
When both husband and wife are regular state government employees, deductions happen from both of their salaries. This falls under the primary double deduction category, making them eligible to claim a refund for the excess amounts deducted over the past months.
| Category | Deduction Source | Action Item |
|---|---|---|
| Both Spouses in Service | Dual salaries (1.5% each) | Opt for single exemption & claim refund |
| One Spouse Employee, One Pensioner | Salary + Pension (1.5% each) | Opt for single exemption & claim refund |
| Service Pensioners | Pension & active benefits | Submit DDO verification |
4. One Spouse a Government Employee, the Other a Pensioner
G.O.MS.No.79 separately lists this as its own restricted case: where one spouse is a State Government employee and the other spouse is a State Government pensioner, the 1.5% EHS contribution should be deducted from only one of the two sources, not both. If deductions have been made from both the salary and the pension in such a household, the excess amount is eligible for refund under the same single-deduction restriction that applies to dual-employee spouse cases.
5. Cases Involving Service Pensioners
Service pensioners who receive a regular retirement pension can also face overlapping contributions or multiple deduction scenarios if tied to other active government benefits or family entitlements.
6. Cases Involving Family Pensioners
Double deduction can also happen when a single pensioner receives both a Service Pension and a Family Pension at the same time. In such cases, the 1.5% EHS contribution should be deducted only once, not separately from both pension amounts. If both have been deducted, the pensioner is eligible to claim a refund for the extra amount.
7. TVVP & Grant-in-Aid Institutions: Not Covered Under EHS
Separately from the household double-deduction cases above, a distinct issue has come up involving Grant-in-Aid institutions — bodies that receive government funding but are not, strictly speaking, part of the regular State Government employee structure. The Telangana Vaidya Vidhana Parishad (TVVP), Hyderabad is one such case, and TVVP has issued its own memo to correct the position.
- G.O.Ms.No.79, Finance (TFR) Dept., dt. 29.06.2026, communicated vide Government Memo No. 3955555/F1/2026, dt. 24.07.2026 of HM&FW (F1) Department;
- Procdgs No. T3A/510/Salaries/2026-27, dt. 25.08.2026, of the Commissioner, Telangana Vaidya Vidhana Parishad; and
- Procdgs No. 01/EHCT/NEHS/1505/2026, dt. 22.08.2026, of the Employees Health Care Trust (the same NEHS Guidelines proceeding covered here).
Following the Government's instructions under the first reference, TVVP had directed deduction of EHS contribution at 1.5% of Basic Pay from employees' salaries starting May 2026. Sanction orders were accordingly issued for the August 2026 salary bill, deducting the contribution for all four months — May, June, July and August 2026 — together.
On reviewing the NEHS Guidelines issued vide the third reference (Proceeding No. 01/EHCT/NEHS/1505/2026, dt. 22.08.2026), it was noticed that coverage of NEHS was not mentioned for Grant-in-Aid Employees in these Guidelines.
Accordingly, the memo directs that the amount deducted towards EHS from the salaries of TVVP employees for the four months (May–August 2026) be returned and credited to the bank accounts of the respective District Headquarters Hospitals (DHQH), with a request to draw and disburse the EHS contribution and credit it to the bank accounts of the concerned employees.
| Category | Deduction Source | Action Item |
|---|---|---|
| TVVP Regular Staff (past deductions) | EHS deducted for May–Aug 2026 (4 months) | Amount returned and credited to DHQH bank accounts, to be drawn & disbursed to concerned employees |
| TVVP Regular Staff (Sept 2026 onward) | No EHS deduction | Coverage of NEHS not mentioned for Grant-in-Aid Employees in the Guidelines |
| Staff on Deputation to TVVP | Deputed from other government departments (foreign service terms) | EHS deduction continues as usual |
8. Step-by-Step Procedure to Apply for the Refund
- Step 1: Prepare a formal request letter addressed to your Drawing and Disbursing Officer (DDO) or Treasury Officer.
- Step 2: Gather all necessary supporting documents and proofs regarding the double deduction.
- Step 3: Submit the application package to your DDO or Treasury Office promptly to avoid billing delays.
- Step 4: The DDO or Treasury Office will verify records and process a supplementary bill through the Integrated Financial Management Information System (IFMIS).
9. Documents Required for Claiming the Refund
- Employment/Pension Proof: Proof of spouse's employment or pension details (as applicable).
- Health Card ID: Copy of your health card identification details. For any card-related issues, check our guide on downloading your NEHS health card.
- Supporting Orders: Any other relevant supporting orders or salary slips showing the double deduction.
10. Role of DDOs in Processing Refund Claims
The DDO plays a central role in verifying details, checking employee and spouse service records, and recording the verified information in the IFMIS-HRMS system. This step ensures the system does not automatically deduct the contribution twice within the same family. Upon satisfactory verification, the DDO is responsible for generating and submitting a supplementary bill via IFMIS for the refund.
As per G.O.MS.No.79, DDOs are required to invariably verify eligibility based on documentary evidence before recording spouse employment/pension particulars — this verification step applies equally to all three restricted cases: both spouses in service, one spouse employee with the other a pensioner, and a pensioner drawing both Service and Family Pension.
11. Refund Mechanism Prescribed by the Finance Department
The Finance Department has established a clear mechanism inside IFMIS. DDOs must use the designated EHS refund option screen to enter employee exemption details along with supporting documentation before generating the refund bills for the past two months.
Deducted contributions are credited to the EHS Fund under the following Head of Account, as specified in G.O.MS.No.79:
| Code | Description |
|---|---|
| 8229 | Development and Welfare Funds |
| 102 | Development Funds for Medical and Public Health Purposes |
| 01 | Employee Health Scheme Fund |
12. Important Points Every Employee and Pensioner Should Know
- Verify Deductions: Cross-check your monthly pay slips to ensure the 1.5% EHS contribution is not being cut from multiple family sources.
- Future Exemptions: Once processed, the exemption prevents future automated dual deductions in the IFMIS payroll system.
- Follow-up & Records: Regularly coordinate with your DDO to track the status of the supplementary bill clearance and keep copies of all submitted application forms.
- Institutional Coverage: If you work at a Grant-in-Aid or Government-funded institution not on the EHS coverage list, confirm with your DDO whether EHS applies to you at all before assuming a "double deduction" refund is the right process — institutions like TVVP fall under a separate exemption, not the household double-deduction category.
- Trust Oversight: The scheme and its Fund are overseen by the Employee Health Care Trust (EHCT), re-constituted under G.O.MS.No.79 with a Board of Trustees chaired by the Chief Secretary to Government.
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