Pension Hike: In an office memorandum dated October 27, 2023, the Department of Pension and Pensioners’ Welfare (DoPPW) has given information about who will be eligible for Enhanced Dearness Relief (DR) and how it will be calculated.
In an office memorandum dated October 27, 2023, the Department of Pension and Pensioners’ Welfare (DoPPW) has given information about who will be eligible for Enhanced Dearness Relief (DR) and how it will be calculated. Earlier this month, the Finance Ministry increased the dearness relief (DR) for central government pensioners from 42 percent to 46 percent. The revised dearness relief came into effect from July 1, 2023.
Which pensioners will get the benefit?
According to DoPPW, the benefit of increased DR will be given to Central Government pensioners or family pensioners, Defense Sector Armed Forces pensioners, Civilian Pensioners, All India Service Pensioners, Railway Pensioners. Apart from this, All India Service Pensioners/Family Pensioners, Provisional Pensioners will get this benefit. Necessary orders in the case of retired judges of the Supreme Court and High Court will be issued separately by the Justice Department.
How much will the increase be
Dearness relief has been increased by 4 percent. With the increase in DR, the monthly pension of retired central government employees will also increase. For example, central government pensioners get a basic pension of Rs 40,100 every month. On 42 percent dearness relief, the pensioner used to get Rs 16,842 as DR. After the latest increase, he will get Rs 18,446 as DR every month. So his pension will increase by Rs 1,604 every month.
As DOPPW has asked banks to start disbursement of DR to pensioners and family pensioners immediately without waiting for any further orders, pensioners and family pensioners are likely to get their enhanced dearness relief soon.
