• Tue. Nov 29th, 2022

Latest from the 7th Wages Commission: Notification of Increase in High Cost Relief for Central Government Pensioners – Key Points

ByChad J. Johnson

Oct 10, 2022

7th Pay Commission Pension Breaking news today (October 9): Prior to Diwali, the monthly amount transferred to central government pensioner accounts was increased. The government recently announced that the rate of Dearness Relief (DR) provided to central government pensioners will increase from 34% to 38% from July 1, 2022. However, an official notification for the implementation of the DR increase has was published in October. 8, 2022 (Saturday) through a memorandum from the Office (OM) of the Department of Pensions and Retiree Welfare (DoPPW).

“The President is pleased to rule that eligible Dearness Relief for Central Government Pensioners/Family Pensioners will be increased from the current rate of 34% to 38% wef
01.07.2022”, indicated OM.

Dearness Relief is provided to retirees to help them combat the erosion of monthly retirement wealth due to inflation. The calculation of the DR rate revision is made on the basis of the 7th recommendation of the Salary Commission.

Also Read: Non-Productivity Related Bonus for Central Government Employees – Eligibility, Calculation

Here are five points of the notification you need to know:

1. Who will benefit from higher DR rates?

The DoPPW OM said the revised DR rate would apply to the following categories of retirees:

  • Central Government Civilian Pensioners/Family Pensioners, including Central Government Absorbed Pensioners in PSUs/Self-Governing Agencies in respect of which orders were issued under DoPPW OM No. 4/34/2002-P&PW (D)Vol.llI dated 23.06.2017 for restoration of full pension after expiry of the 15-year commutation period.
  • Armed forces retirees, civilian retirees paid on Defense Service estimates.
  • All Indian Service Retirees
  • Railway pensioners/family pensioners
  • Retirees benefiting from a provisional pension
  • Burmese civilian pensioners/family pensioners and pensioners/family of
  • Displaced Government Pensioners from Burma/Pakistan, in respect of whom Orders were issued by DoPPW OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

2. Calculation of the fraction

Dearness Relief payment involving a fraction of a rupee will be rounded up to the next higher rupee.

3. Separate Orders for Judges

In the case of retired Supreme Court and high court justices, the necessary orders will be issued separately by the Department of Justice, the DoPPW said.

Read also: GPF, CPF, AISPF, SRPF, AFPPF interest rates unchanged. Details

4. Who will calculate the DR payable to retirees?

DoPPW OM says it will be the responsibility of pension disbursement authorities including nationalized banks etc. to calculate the amount of DR payable in each individual case.