The Indian government has announced a 4% increase in Dearness Relief (DR) for pensioners, raising it to 50%, effective from January 1, 2024. This hike is detailed in the Department of Pension & Pensioners’ Welfare’s (DoPPW) memorandum dated March 13, 2024.
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Eligibility Criteria
The enhanced DR extends to:
- Civilian Central Government Pensioners/Family Pensioners, including those in PSU/Autonomous Bodies, eligible for pension restoration after 15 years, as per DoPPW’s OM No. 4/34/2002-P&PW(D)Vol.II dated June 23, 2017.
- Armed Forces Pensioners/Family Pensioners and those paid from Defence Service Estimates.
- All India Service Pensioners/Family Pensioners.
- Railway Pensioners/Family Pensioners.
- Provisional Pension recipients.
- Burma Civilian Pensioners/Family Pensioners and those displaced from Burma/Pakistan, as per DoPPW’s OM No. 23/3/2008-P&PW(B) dated September 11, 2017.
Employed family pensioners and re-employed Central Government Pensioners will adhere to Rule 52 of CCS (Pension) Rules, 2021, and DoPPW’s OM No. 45/73/97-P&PW (G) dated July 2, 1999, with amendments. The DR for pensioners with multiple pensions remains unchanged. Separate orders for retired Judges of the Supreme Court and High Courts will be issued by the Department of Justice.
Calculation Method
The DR will increase from 46% to 50% of the basic pension/family pension. For instance, a pensioner with a basic pension of Rs 40,100 will see their DR rise from Rs 18,446 to Rs 20,050, increasing their monthly pension by Rs 1,604.
Payment Procedure
Payments involving fractions of a rupee will be rounded up. Disbursing authorities are tasked with calculating the payable DR.
Payment Timeline
Pension Disbursing Banks are instructed to expedite the payment of DR without waiting for further directives. Arrears will not be paid before the pension/family pension disbursement for March 2024. However, banks are directed to begin disbursing the increased DR promptly, ensuring pensioners and family pensioners receive their relief soon.
