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Pension Alert: Dearness Relief For These CPF Beneficiaries Hiked To 356% Of Basic Ex-Gratia


In an office memorandum dated September 20, 2021, the department of Pension and Pensioner' Wealth reported of the hike in dearness relief for certain category of government employees. For surviving beneficiaries who retired from service term between 18th November 1960 and 31st December 1985, dearness relief or DR has been hiked from 312% of the basic ex-gratia to 356%. The hiked DR relief shall be extended with effect from July 1, 2021.

Pension Alert: Dearness Relief For These CPF Beneficiaries Hiked

The centre has taken a decision that the DR grant to the CPF beneficiaries receiving ex-gratia as per the 5th CPC will be increased w.e.f. from 01.07.2021.

"The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 and 31.12.1985, and are entitled to basic ex-gratia @ Rs.3000. Rs.1000, Rs.750 & Rs.650 for Group A, B, C & D respectively w.e.f 4th June, 20l3...shall now be entitled to enhanced Dearness Relief from 3l2% of the basic ex-gratia to 356% of the basic ex-gratia w.e.f 0 1.07.2021," DoPPW said.

Additionally, the office of memorandum said the different categories of CPF beneficiaries who will be entitled to enhanced DR from 304% of the basic ex-gratia to 348% of the basic ex-gratia w.e.f 01.07.2021 include:

• The widows and eligible children of the deceased CPF beneficiary who had retired from service prior to 1.1.1986 or who had died while in service prior to 1.1.1986 and are entitled to revised ex-gratia at Rs.645 per month w.e.f 04 June, 2013.
• Central Government employees who had retired on CPF benefits before 18.11.1960 and are in receipt of Ex-gratia payment of Rs. 654, Rs.659, Rs.703 and Rs.965.

The DoPPW clarifies further that the hike has subsumed the additional installments as for 01.01.2020, O1.O7.2020 and 01.01.2021.

"Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee. 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," the O.M. read.

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