7th Pay Commission: Dearness Relief hiked by 3%; these central govt pensioners to benefit

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The Department of Pension & Pensioners’ Welfare informed that Dearness Relief (DR) to Central Government pensioners, family pensioners in increased by 3 % to 34% effective from January 1, 2022.

According to the Department of Pension & Pensioners’ Welfare tweet, the DoPPW issued orders increasing the Dearness Relief available to Central Government pensioners, family pensioners from 31% to 34% of the basic pension, family pension, effective January 1, 2022.

The Dearness Relief is payable on original basic pension before commutation.

According to the office memorandum dated April 5, 2022, “The undersigned is directed to refer to this Department’s OM No. 42/7/2021 – P&PW(D) dated 27. 10.2021 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shal1 be enhanced from the existing rate of 31% to 34% w.e.f 01.01.2022.

Thèse rates of DR will be applicable to the following categories:-

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 23.06.201 7 for restoration of full pension after expiry of commutation period of 15 years.

The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates.

  • All India Service Pensioners
  • Railway Pensioners/family pensioners
  • Pensioners who are in receipt of provisional pension
  • 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 1 1.09.2017.

According to the Pensioner’s Portal website, “DR is normally declared twice a year during the months of March & September. So in the months of January & February, DR on Pension/Family Pension will be calculated according to the DR Rates available for the month of December of the previous year. Similarly, for the month of July & August, DR will be calculated w.r.t. DR rates available for the month of June.”

Arrears of DR for the months of January and February, as well as July and August, will be disbursed by the disbursing authorities in April and October, respectively.

In March, it was announced that the dearness allowance component of central government employees’ salaries has been hiked. According to the notification, the DA has been increased by 3% to 34% from 31% previously. The increase will go into effect on January 1, 2022.

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