In an Office Memorandum dated October 27, 2023, the Department of Pension & Pensioners’ Welfare (DoPPW) has mentioned who will be eligible for the hiked dearness relief (DR) and how it will be calculated. Earlier this month, the Ministry of Finance hiked the dearness relief (DR) for the central government pensioners from 42% to 46%. The revised dearness relief came into effect from July 1, 2023.
As per DoPPW, the increased DR will apply to the following categories: (i) Civilian Central Government pensioners/family pensioners including Central Govt. absorbee pensioners in PSU/Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years.(ii) The Armed Forces pensioners/family pensioners and Civilian pensioners/family pensioners paid out of the Defence Service estimates.
(iii) All India Service pensioners/family pensioners.
(iv) Railway pensioners/family pensioners.
(v) Pensioners who receive provisional pension.
(vi) The Burma Civilian Pensioners/Family Pensioners and Pensioners/families of displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders have been issued vide this Department’s OM No. 23/3/2008-P&PW(B) dated 11.09.2017.
In the case of retired judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately, it said.
“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. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged,” the department said.
How much DR will pensioners, family pensioners get?
Dearness relief has been increased by 4%. With a hike in DR, the monthly pension of retired central government employees will also rise. For instance, a central government pensioner gets 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, he will get Rs 18,446 every month as DR. So, his pension will rise by Rs 1,604 per month.
The payment of dearness relief involving a fraction of a rupee will be rounded off to the next higher rupee, the department mentioned.
Do note that the pension disbursing authorities, including the nationalised banks, will be responsible for calculating the quantum of DR payable in each case, DoPPW said.
When will the pensioners get the hiked DR?
DoPPW instructed, “The offices of Accountant General and authorised pension disbursing banks are requested 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 in view of letter No. 528-TA, II/34-80-II dated 23/04/1981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64.”
As DoPPW asked the banks to immediately start disbursing DR for pensioners and family pensioners without waiting for any further order, the pensioners and family pensioners are likely to get their hike dearness relief soon.