The central government has finally brought happiness on the faces of central government employees and pensioners by announcing a hike in the Dearness Allowance and Dearness Relief with effect from July 01, 2021, to 28 percent, representing an increase of 11 percent over the existing rate of 17 percent of the Basic Pay/ Pension.
According to the Office Memorandum (OM) shared by the Ministry of Personnel, Public Grievance & Pensions Department of Pension & Pensioners’ Welfare, the Dearness Relief (DR) admissible to Central Government pensioners/family pensioners shall be increased from the existing rate of 17 percent to 28 percent of the basic pension/ family pension (including additional pension/ family pension) with effect from July 1, 2021.
The memorandum further stated that the increased rates of Dearness Relief (DR) will be applicable to Civilian Central Government Pensioners/ Family Pensioners including Central Government absorbed pensioners in PSU/ Autonomous Bodies in respect of whom orders have been issued for restoration of full pension after the expiry of commutation period of 15 years.
The Armed Forces pensioners/ family Pensioners and Civilian Pensioners/ Family Pensioners paid out of the Defence Service Estimates. All India Services Pensioners/ Family Pensioners. Railway Pensioners/ Family Pensioners. Pensioners who are in receipt of a provisional pension, the OM said.
The Burma Civilian Pensioners/ Family Pensioners and displaced Pensioners/ Family Pensioners from Pakistan will also be given the hike, the OM added.
The memorandum also revealed that the payment of Dearness Relief which involves a fraction of a rupee shall be rounded off to the next highest rupee. Besides that, other provisions governing the grant of Dearness Relief in respect of employed family pensioners and re-employed Central Government pensioners will be regulated in accordance with the provisions contained in the OM dated July 7, 1999, as amended from time to time. The provisions related to the regulation of Dearness Relief where a pensioner is in receipt of more than one pension will not be changed.
When it comes to retired Judges of the Supreme Court and High Courts, it is important to know that required orders will be issued by the Department of Justice separately. It will be the responsibility of the pension disbursing authorities, including the nationalised banks, etc. to calculate the quantum of Dearness Relief payment in each individual case, the OM mentioned.
The Accountant General’s office and authorised Pension Disbursing Banks are further asked to make arrangements for the payment of Dearness Relief to pensioners/ Family Pensioners on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India, the OM added.
These orders are directed after getting an application to the persons belonging to the Indian Audit and Accounts Department and it is done in consultation with the Comptroller and Auditor General of India, the OM said.