For Central Government Pensioners, Dearness Relief Has Increased By 4%: How Do I Verify My Pension Calculation?

Recently, central government pensioners received a rise in dearness relief (DR) of 4% to 50%. The higher pricing will take effect on January 1, 2024. The Department of Pension and Pensioners’ Welfare (DoPPW) would apply the increased DR to the following groups, according to an Office Memorandum dated March 13, 2024:

– Orders for the restoration of full pension after the 15-year commutation period have been issued for Civilian Central Government Pensioners/Family Pensioners, including Central Government absorbee pensioners in PSU/Autonomous Bodies, under this Department’s OM No. 4/34/2002-P&PW(D)Vol.II dated June 23, 2017.

– The Defense Service Estimates are used to pay the Armed Forces Pensioners or Family Pensioners and the Civilian Pensioners or Family Pensioners.

all pensioners from the Indian service and their families.

Railroad and family pensioners.

older adults receiving a temporary pension.

Under this Department’s OM No. 23/3/2008-P&PW(B) dated September 11, 2017, the Burmese Civilian Pensioners/Family Pensioners and the Pensioners/Families of Displaced Government Pensioners from Burma/Pakistan have received instructions.

In accordance with the provisions found in Rule 52 of the CCS (Pension) Rules, 2021 and this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999, as amended from time to time, other provisions governing the grant of DR in respect of employed family pensioners and re-employed Central Government pensioners will be regulated, according to an Office Memorandum dated March 13.

The agency said that the legislation controlling the regulation of DR in the event that a retiree gets several pensions will remain in place. DoPPW reports that in the meantime, the Department of Justice will issue distinct directives for retiring Supreme Court and High Court justices.

How much DR will be given to seniors and their families?

The amount of dearness alleviation has increased by 4%. When the DR rises, retired central government workers’ monthly pensions will also rise.

For instance, the basic pension for a retiree of the federal government is Rs 40,100 per month. With a 46% dearness reduction, the pensioner would get Rs 18,446 in direct retirement benefits. In light of the most recent increase, his monthly DR will be Rs 20,050. His monthly pension would thus rise by Rs 1,604 as a consequence. The amount of DR owed in each situation must be determined by the pension disbursing organizations, which include nationalized banks.

Since DoPPW has ordered banks to start disbursing DR for seniors and family pensioners without waiting for additional directives, pensioners and family pensioners should soon get dearness relief.