Dearness Relief for Pensioners: the government has issued an order on dearness relief

Dearness Relief for Pensioners With this announcement of the government, the confusion regarding pension has ended. For the last several days, information about this was being sought from the Pension Department of the Government. Recently, the DAR for pensioners was amended.

Dearness Relief for Pensioners: the government has issued an order on dearness relief
Dearness Relief for Pensioners, image source: istock

Dearness Relief for Pensioners: The Central Government has issued clarification regarding Dearness Relief (DR) for pensioners. The Department of Pension and Pensioners' Welfare under the Ministry of Personnel, Public Grievances and Pensions has issued a clarification regarding the DR benefit being given to the retired employees of the Central Government, saying that dearness relief is payable on the basic pension before commutation. The concerned department has also issued an Office Memorandum (OM) in this regard.

Under Rule 52 of the CCS (Pension) Rules, 2021, the DR benefit being given to retired Central Government employees and family pension beneficiaries is to reduce the value escalation. The benefit also includes those who are in receipt of Compassionate Allowance under Rule 41. It is given on half yearly basis. 

Government has increased DA and DR

The Central Government has announced Dearness Allowance (DA) along with DR Allowance. Let us tell you that both DA and DR increase together. While the DA hike is applicable to central government employees, the DR hike is applicable to central government pensioners, including family pensioners. 

The central government announced a 4 per cent hike in DA and DR.

Under the 7th Central Pay Commission (7th CPC), the existing or current DR rates for Central Government pensioners are 38 per cent, calculated on the basic pension before commutation and not on the reduced pension after commutation. The DR rate of 38 per cent is applicable from July 1, 2022. The central government had recently announced a 4 per cent hike in DA and DR.