Dearness Relief (DR) For Central Government Pensioners Hiked To 38% Ahead Of Diwali

The Union Cabinet approved the proposal to increase the dearness allowance (DA) for central government employees and dearness relief for pensioners

Adding to the joy of this festive season for pensioners, the Central government has increased the dearness relief (DR) by 4 per cent. The DR has been revised from 34 per cent to 38 per cent, and it will be effective from July 1, 2022.

The Department of Pension & Pensioners' Welfare (DoPPW), released a formal notification on October 8 for the implementation of the hiked DR provided to Central Government pensioners.

The Union Cabinet in September last week approved the proposal to increase the dearness allowance (DA) for central government employees and dearness relief for pensioners.

It was decided in the Cabinet Committee on Economic Affairs (CCEA) meeting headed by Prime Minister Narendra Modi that an additional installment of DR be released to compensate for inflation.

An official notification has been released stating the changes in the DR.

“The President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 34 per cent to 38 per cent w.e.f 01.07.2022,” the office memorandum read.

The hike in the DR rates will be applicable to Central Government Pensioners, Family Pensioners including the retired employees of PSU and Autonomous Bodies.

In addition, the increase will also benefit armed forces pensioners paid out of the Defence Service Estimates, All India Service Pensioners, Railway pensioners and family pensioners.

Separate orders will be issued by the Department of Justice, for implementation of the revised DR in the case of retired judges of the Supreme Court and High Courts, according to the DoPPW.

As per the official memorandum, the pension disbursing authorities, including the nationalised banks and others, will calculate the quantum of DR payable in each individual case.

In March, the Cabinet approved an increase of 3 per cent in the dearness allowance and dearness relief. It was enhanced from 31 per cent to 34 per cent with effect from January 1, 2022.

DA and DR are revised by the Central government on January 1 and July 1 of every year considering the inflation rate. The changes are made according to an accepted formula based on the recommendations of the 7th Pay Commission.