Dearness Relief Increased By 4% For Central Govt Pensioners; How To Check Pension Calculation?

Dearness relief (DR) has recently been increased for central government pensioners by 4 per cent to 50 per cent. The increased prices are effective as of January 1, 2024. According to an Office Memorandum dated March 13, 2024, the Department of Pension and Pensioners’ Welfare (DoPPW) would apply the enhanced DR to the following categories:

– Civilian Central Government Pensioners/Family Pensioners, including Central Government absorbee pensioners in PSU/Autonomous Bodies, for whom orders have been issued under this Department’s OM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017, for the restoration of full pension after the 15-year commutation period has expired.

– The Armed Forces Pensioners or Family Pensioners and Civilian Pensioners or Family Pensioners are paid from the Defence Service Estimates.

– All India Service Pensioners and Family Pensioners.

– Railway/Family Pensioners.

– Pensioners on a provisional pension.

– The Burma Civilian Pensioners/Family Pensioners, as well as the Pensioners/Families of Displaced Government Pensioners from Burma/Pakistan, have received instructions under this Department’s OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

“Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in Rule 52 of CCS (Pension) Rules, 2021 and this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999 as amended from time to time,” an Office Memorandum dated March 13 reads.

The laws governing the regulation of DR if a pensioner receives several pensions would remain intact,” the department noted. Meanwhile, the Department of Justice will issue separate orders for retired Supreme Court and High Court judges, according to DoPPW.

What amount of DR will pensioners and family pensioners receive?

There has been a 4 per cent increase in dearness relief. The monthly pension of retired central government employees will increase when the DR rises.

For example, a central government pensioner receives Rs 40,100 per month as a basic pension. At 46 per cent dearness alleviation, the pensioner will receive Rs 18,446 as DR. Following the most recent increase, he will receive Rs 20,050 as DR per month. As a result, his monthly pension will increase by Rs 1,604. The pension disbursing agencies, including nationalised banks, are responsible for calculating the amount of DR payable in each case.

Pensioners and family pensioners are set to receive hike dearness relief soon since DoPPW has instructed banks to begin disbursing DR for pensioners and family pensioners without waiting for further orders.