In an Office Memorandum dated October 27, 2023, the Department of Pension & Pensioners’ Welfare (DoPPW) has outlined the eligibility and calculation criteria for the recently increased dearness relief (DR). According to the Economic Times report, the Ministry of Finance had raised the DR for central government pensioners from 42 per cent to 46 per cent earlier this month, effective from July 1, 2023.
According to the report, the increased DR will apply to the following categories:
–Civilian Central Government pensioners, including those in PSU/Autonomous Bodies who are entitled to full pension restoration after 15 years, as per a 2017 order.
–Armed Forces pensioners, as well as civilian pensioners paid from Defence Service estimates.
–All India Service pensioners.
–Railway pensioners.
–Pensioners receiving provisional pension.
Read More: NPS: How to get Rs 1 lakh monthly pension with 20 years of investment
–Burma Civilian Pensioners/Family Pensioners and 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.
–For retired judges of the Supreme Court and High Courts, the Department of Justice will issue separate orders.
The report added that the increased DR amounts to a 4 per cent raise, leading to higher monthly pensions for central government retirees. For example, a pensioner with a basic pension of Rs 40,100 previously received Rs 16,842 as DR at 42 per cent. With the recent hike, they will now receive Rs 18,446 monthly, increasing their pension by Rs 1,604 per month.
Read More: This Post Office Savings Scheme offers monthly income of Rs 9,000
As per The Economic Times, 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.”
