7th CPC: DR Hiked To 31% For Central Government Pensioners/Family Pensioners

The Ministry of Personnel, Public Grievances and Pensions has announced that the Dearness Relief payable to Central Government pensioners/family pensioners shall be increased from 28 percent to 31 percent of the basic pension/family pension, including additional pension/family pension, with effect from July 1, 2021. The announced raise in dearness relief came into existence since the Finance Ministry raised the rate of Dearness Allowance for Central Government Employees to 31%, effective from July 1st, 2021.

The Department of Pension and Pensioners' Welfare (DoPPW) stated in an Office Memorandum (O.M.) dated October 27, 2021, that "the President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 28% to 31% of the basic pension/family pension (including additional pension/family pension) w.e.f 01.07.2021." These DR rates will apply to the following categories, according to an official memorandum released by the Department of Pension and Pensioners' Welfare on October 27, 2021:

i. 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 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years.

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

iii. All India Service Pensioners/Family Pensioners.

iv. Railway Pensioners/family pensioners.

v. Pensioners who are in receipt of provisional pension.

vi. 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 11.09.2017.

The payment on account of Dearness Relief involving a fraction of a rupee shall be rounded to the next higher rupee and it will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case, claimed DoPPW.

The Department of Expenditure, under the Finance Ministry, stated in an office memorandum issued on Tuesday that for the Basic Pay for calculation of DA the term 'basic pay' means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay, etc.