Department of Pension & Pensioners’ Welfare Announces 4% Increase in Dearness Relief for Eligible Central Govt Pensioners and Family Pensioners

Key Takeaways:

• 4% increase in dearness relief (DR) for eligible Central Government pensioners and family pensioners.
• The hike came into effect from July 1, 2023.
• Eligible categories include civilian central government pensioners, armed forces pensioners, all India service pensioners, railway pensioners, and others as specified in the memorandum.
• The pension disbursing authorities, including nationalized banks, are responsible for calculating the quantum of DR payable in each case.
• The payment of dearness relief involving a fraction of a rupee will be rounded off to the next higher rupee.
• Offices of Accountant General and authorized pension disbursing banks have been instructed to arrange payment of dearness relief without waiting for further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India.

The Department of Pension & Pensioners’ Welfare (DoPPW) has released an Office Memorandum detailing the recent hike in dearness relief (DR) for Central Government pensioners and family pensioners. The hike, which amounts to 4%, was implemented by the Ministry of Finance and came into effect from July 1, 2023. The increased DR will apply to various categories of pensioners, including civilian central government pensioners, armed forces pensioners, all India service pensioners, railway pensioners, and others as specified in the memorandum.

Eligibility for Dearness Relief Hike

The increased dearness relief will apply to the following categories:

1. Civilian Central Government pensioners/family pensioners, including Central Govt. absorbee pensioners in PSU/Autonomous Bodies.

2. Armed Forces pensioners/family pensioners and Civilian pensioners/family pensioners paid out of the Defence Service estimates.

3. All India Service pensioners/family pensioners.

4. Railway pensioners/family pensioners.

5. Pensioners who receive provisional pension.

6. Burma Civilian Pensioners/Family Pensioners and Pensioners/families of displaced Government Pensioners from Burma/Pakistan.

7. Retired judges of the Supreme Court and High Courts (necessary orders will be issued separately by the Department of Justice).

Calculation of Dearness Relief

The memorandum also specifies how the payment of dearness relief will be calculated. It mentions that the pension disbursing authorities, including nationalized banks, will be responsible for calculating the quantum of DR payable in each case. Additionally, it states that the payment of dearness relief involving a fraction of a rupee will be rounded off to the next higher rupee.

Amount of Dearness Relief

The increase in dearness relief by 4% will result in a rise in the monthly pension of retired central government employees. For example, if a central government pensioner receives a basic pension of Rs 40,100 per month, at 42% dearness relief, the pensioner used to get Rs 16,842 as DR. After the latest hike, the pensioner will receive Rs 18,446 every month as DR, resulting in a rise of Rs 1,604 per month in their pension.

Disbursal of Hiked Dearness Relief

The DoPPW has instructed the offices of Accountant General and authorized pension disbursing banks to arrange payment of dearness relief to pensioners/family pensioners based on these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India. As a result, pensioners and family pensioners are likely to receive their hiked dearness relief soon.

In summary, the recent hike in dearness relief for Central Government pensioners and family pensioners will benefit eligible individuals by increasing their monthly pension amounts. The pension disbursing authorities have been instructed to promptly arrange the payment of dearness relief without waiting for further instructions.

FAQ

Q1: When did the 4% increase in dearness relief come into effect?

A1: The increase in dearness relief came into effect from July 1, 2023.

Q2: Who is eligible for the increased dearness relief?

A2: Eligible categories include civilian central government pensioners, armed forces pensioners, all India service pensioners, railway pensioners, and others as specified in the memorandum.

Q3: How will the payment of dearness relief be calculated?

A3: The pension disbursing authorities, including nationalized banks, are responsible for calculating the quantum of DR payable in each case. Additionally, the payment of dearness relief involving a fraction of a rupee will be rounded off to the next higher rupee.