In a significant development, the Finance Ministry has decided to raise the Dearness Relief (DR) rate for Central Government pensioners and family pensioners. This increase, as per a notification dated 27th October 2023 from the Department of Pension & Pensioners’ Welfare (DoPPW), raises the DR rate from the existing 42% to 46% of the basic pay/family pension. The enhanced DR comes into effect from 1st July 2023.
Beneficiaries of the Increased Relief
The increased dearness relief will benefit various categories of pensioners, including civilian Central Government pensioners and family pensioners, Armed Forces pensioners and family pensioners, civilian pensioners and family pensioners paid from the Defence Service Estimates, All India Service pensioners and family pensioners, Railway pensioners and family pensioners, pensioners receiving provisional pension, and Burma Civilian pensioners and families, among others. The notification also addresses the pensioners/families of displaced Government pensioners from Burma/Pakistan.
Rounding Off Fractional Payments
The notification specifies that Dearness Relief payments involving fractional rupees shall be rounded up to the next higher rupee to facilitate smoother disbursements.
Regulations and Provisions
The DoPPW clarified that regulations for the payment of Dearness Relief to employed family pensioners and re-employed Central Government pensioners would be governed by Rule 52 of CCS (Pension) Rules, 2021, and the Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999, as amended over time. It further stated that provisions concerning the regulation of DR for pensioners receiving multiple pensions would remain unchanged.
Retired Judges’ Relief
The Department of Justice will issue necessary orders separately for retired Judges of the Supreme Court and High Courts.
This increase in Dearness Relief will bring financial relief to a significant section of pensioners, reflecting the government’s commitment to supporting retirees during periods of inflation and rising living costs.