7th Pay Commission Latest News Today 2022 (DR Calculator): Like Dearness Allowance for Central Government Employees, Central Government Pensioners get Dearness Relief (DR) to compensate for the fall in monthly pension value due to inflation.
Government revises DA and DR rates for employees and pensioners simultaneously. Normally DA and DR rates are announced twice a year in March and September. With September, employees and pensioners are eagerly waiting for the announcement of DA/DR hike by the central government.
DA/DR hike announcement
Meanwhile, a utility on the government’s official pensioners’ portal allows pensioners to calculate DR and gross pension/family pension.
Here is a sample calculation: Suppose the basic pension/family pension before commutation is Rs.50,000 and the amount of committed pension is zero. In this case, the calculator shows that your DR amount would be Rs 17,000 at the rate of 34% while the gross pension / family pension would be Rs 67,000.
In the same example, if the amount pension is Rs.20,000 then the DR amount will be Rs.17,000 and the amount of gross pension/family pension will be Rs.47,000.
Note: DR calculator only gives indicative figures for understanding. Actual DR and Pension Amount may be different. You can use DR Calculator on Pension Calculator .
How DR arrears are repaid
As mentioned above, DR rates are normally announced twice a year in March and September. As per the pensioners’ portal, the DR on pension for the months of January and February is calculated as per the DR rates available for the month of December of previous years.
The DR for the months of July and August is calculated on the basis of the DR rates available for the month of June.
The pensioners’ portal states that the arrears of DR for the months of June and February and July and August are disbursed by the authorities in the month of April and October respectively.
Central government employees get an option to convert a part of the pension into a lump sum payment, which will not exceed 40%. To do so, they do not require any medical examination if the option is exercised within one year of retirement.
The DR rate for central government pensioners is decided as per the formula suggested by the 7th Pay Commission.
7th Pay Commission Dearness Allowance Latest News
Central government employees and pensioners are currently getting Dearness Allowance (DA) and Dearness Relief (DR) at the rate of 34%. They are expecting that the Union Cabinet led by Prime Minister Narendra Modi will soon announce a hike in DA and DR rates for central government employees and pensioners.
The government amends the DA/DR to compensate for the depreciation of monthly salary/pension assets due to rising inflation. The revision is done biennially.
Decisions to hike DA/DR rates are generally taken during the meeting of the Union Cabinet headed by the Prime Minister. The latest rate of 34% DA/DR was announced in March 2022, when the Union Cabinet approved the release of an additional installment of DA to Central Government employees and an additional installment of DR to Central Government pensioners with effect from 01-01-2022. was approved. The decision taken in March raised DA/DR rates by 3% from the then 31% rate. The rate of DA is calculated as a percentage of basic pay/pension.
Also, the DA/DR rate is revised as per the accepted formula recommended by the 7th Central Pay Commission.
Meanwhile, several states such as Maharashtra, Tamil Nadu, Chhattisgarh and Gujarat announced a hike in dearness allowance in August as they sought to bring their employees’ wages at par with that of central government employees.
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