Dearness Relief hiked to 50% – What does it mean for central government pensioners – know eligibility and payment details here | India Business News

Dearness Relief hike: The central government has just lately introduced a 4% hike in Dearness Relief (DR) for pensioners, efficient from January 1, 2024. This adjustment will enhance the DR to 50% for eligible pensioners. Eligibility and calculation details are supplied in a March 13, 2024 Office Memorandum from the Department of Pension & Pensioners’ Welfare (DoPPW).Here’s what you want to know about who qualifies for this enhance and once they can anticipate to obtain it.
Eligibility standards
As per an ET report, the elevated DR applies to numerous classes of pensioners, together with:

The division clarified that the grant of Dearness Relief (DR) for employed household pensioners and re-employed Central Government Pensioners will observe the rules outlined in Rule 52 of CCS (Pension) Rules, 2021, and Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999, topic to amendments. Additionally, the principles governing DR for pensioners receiving a number of pensions will stay unchanged.
For retired Judges of the Supreme Court and High Courts, the Department of Justice will situation separate orders as mandatory, as said by the DoPPW.
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Calculation technique
The Office Memorandum said that Dearness Relief for Central Government Pensioners/Family Pensioners might be elevated from the present price of 46% to 50% of the essential pension/household pension (together with extra pension/household pension), efficient from January 1, 2024.
The latest 4% enhance in Dearness Relief (DR) implies that retired central government staff will see an increase of their month-to-month pension.
For instance, if a central government pensioner receives a primary pension of Rs 40,100 monthly, beforehand at 46% DR, they acquired Rs 18,446 as DR. With the most recent hike, they may now obtain Rs 20,050 each month as DR. Consequently, their pension will enhance by Rs 1,604 monthly.
Payment process
DoPPW has said, “The payment of dearness relief involving a fraction of a rupee shall be rounded off to the next higher rupee.” Pension disbursing authorities, together with nationalized banks, are accountable for calculating the DR payable in every case.
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When to anticipate funds
The places of work of the Accountant General and approved Pension Disbursing Banks are urged to proceed with the payment of Dearness Relief to Pensioners/Family Pensioners based mostly on these directions. They ought to achieve this with out awaiting additional directives from the Comptroller and Auditor General of India and the Reserve Bank of India. This request is made in accordance with letter No. 528-TA, II/34-80-II dated April 23, 1981, from the Comptroller and Auditor General of India to all Accountant Generals, and Reserve Bank of India Circular No. GANG No. 2958/GA-64 (ii) (CGL)/81 dated May 21, 1981, addressed to State Bank of India, its subsidiaries, and all Nationalized Banks.
It’s essential to word that the payment of arrears of Dearness Relief is not going to be made earlier than the date of disbursement of pension/household pension for March 2024.
However, the DoPPW has instructed banks to promptly provoke the disbursement of DR for pensioners and household pensioners with out ready for additional orders. This implies that pensioners and household pensioners can anticipate to obtain their elevated Dearness Relief quickly.