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DA Update: Dearness Relief For Certain Central Govt Pensioners Increased; Check Details

Dearness relief for certain categories of government employees has increased from 368 per cent to 381 per cent of the basic ex-gratia. This is for surviving CPF beneficiaries who retired from service between November 18, 1960, and December 31, 1985, according to a office memorandum by the Ministry of Personnel, Public Grievances and Pensions.

“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 3,000, Rs 1,000, Rs 750 & Rs 650 for Group A, B, C & D, respectively, w.e.f June 4, 2013, vide OM No. 1/10/201 2-P&PW(E) dtd. June 27, 2013, shall now be entitled to enhanced dearness relief from 368 per cent of the basic ex-gratia to 381 per cent of the basic ex-gratia w.e.f 01.01.2022,” according to the office memorandum dated May 11.

The ministry said it has been decided that the dearness relief admissible to the CPF beneficiary in receipt of basic ex-gratia payment in the 5th CPC (Central Pay Commission) will be enhanced with effect from January 1, 2022.

The following categories of CPF beneficiaries will be entitled to increased dearness relief, which will increase from 360 per cent to 373 per cent of the basic ex-gratia:

First, “the widows and eligible children of the deceased CPF beneficiary who had retired from service prior to 01.01.1986 or who had died while in service prior to 01.01.1986 and are entitled to revised ex-gratia @ Rs.645 per month w.e.f 04 June, 2013 vide OM No 1/10/2012-P&PW(E) dated June 27, 2013.”

Second, “central government employees who had retired on CPF benefits before November 18, 1960, and are in receipt of an ex-gratia payment of Rs 654, Rs 659, Rs 703 and Rs 965.”

The payment of dearness relief involving a fraction of a rupee is rounded up to the next higher rupee. “It will be the responsibility of the pension disbursing authorities, including the nationalised banks, etc, to calculate the quantum of DR payable in each individual case,” it said.

Note that calculating the amount of DR payable in each case will be the duty of the pension disbursing agencies, including nationalised banks.

Meanwhile, government employees are also expected to soon get good news regarding their salaries. The Centre may announce another hike in dearness allowance (DA) in July or August, according to reports. The DA and DR are revised twice a year in January and July, based on the retail inflation data.

Dearness allowance, according to reports, is also likely to be increased by a further four percent in July, which would take DA to 38 per cent.

The country’s retail inflation in April accelerated to an eight-year high of 7.79 per cent, on continued high food prices. Inflation in the food basket rose to 8.38 per cent in April, from 7.68 per cent in the preceding month and 1.96 per cent in the year-ago month.

Dearness allowance is given to government employees, while the dearness relief is for pensioners.

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