Central govt clarification on Dearness Relief that pensioners ought to know

Dearness Relief for pensioners: The central authorities has issued clarification in regard to Dearness Relief (DR) for central authorities pensioners. The Department of Pension & Pensioners’ Welfare underneath the Ministry of Personnel, Public Grievances & Pensions has issued clarification in regard to DR profit being given to retired central authorities staff and stated that Dearness Relief is payable on authentic primary pension earlier than commutation. The involved division has challenge Office Memorandum (OM) on this regard as effectively.

Issuing clarification on pension calculation, the Department of Pension & Pensioners’ Welfare stated, “References/Representations have been received in this Department seeking clarification whether the Dearness Relief is payable on original basic pension or on pension as reduced after commutation. It is clarified that dearness relief is payable on the original basic pension before commutation or such basic pension before commutation as revised on implementation of recommendations of Pay Commission etc. and not on the pension as reduced after deduction of commuted pension.”

The clarification is anticipated to place relaxation on the confusion whether or not DR profit is payable on authentic primary pension earlier than commutation or on the diminished pension after commutation.

Under Rule 52 of CCS (Pension) Rules, 2021, DR profit being given to retired central authorities staff and household pension beneficiaries is granted to pare the value rise. The profit consists of even those that are drawing compassionate allowance underneath Rule 41. It is payable half-yearly and central authorities introduced DR allowance together with the Dearness Allowance (DA). each DA and DR will increase in tandem the place DA hike is relevant on working central authorities staff whereas DR hike is relevant on central authorities pensioners that embody household pensioners as effectively.

Under seventh Central Pay Commission (seventh CPC), current or present DR charges for central authorities pensioners is 38 per cent, which is calculated on the essential pension earlier than commutation and never on the diminished pension after commutation. The DR fee of 38 per cent is relevant from 1st July 2022 as central authorities not too long ago introduced 4 per cent DA and DDR hike.

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