7th Pay Commission: Central government made a big statement on dearness relief, now this will be the calculation of DR of retired employees

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7th Pay Commission DR Hike: There is important news for the retired employees of the Central Government. The government has issued a statement regarding Dearness Relief (DR) of pensioners.

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The Pensioners and Welfare Department, which comes under the Ministry of Personnel, has said that the Dearness Allowance to the pensioners will be paid on the basis of old and original basic pension. For this, the concerned department has also issued the official notification.

Government issued memorandum

The Pensioners and Welfare Department has said that it had received several queries related to this, in which it was asked whether Dearness Allowance is being given on basic pension or is it reduced after commutation on pension? Giving information on this, the department said that dearness relief has been given on the basic pension before commutation or on the basic pension before commutation on the basis of the recommendations of the commission. After deduction of commuted pension, dearness relief is not being paid on pension.

This clarification from the department has cleared the dilemma of pensioners that dearness relief is paid to them on the basis of original basic pension and not on the basis of reduced pension after commutation.

Pensioners get dearness relief

It is worth noting that under sub-rule 52 of the Pension Rules 2021, pension relief is paid to retired employees amid rising inflation. This amount is given to the pensioner or his beneficiary. Let us tell you that like dearness allowance, the government announces increase in it every half year and at the time of increasing DA for employees, the increase of DR for retired employees is announced.

How much is the DR at this time?

Let us tell you that this time under the 7th Pay Commission, the Central Government has increased the dearness allowance of the employees to 38 percent. Along with this, dearness relief to pensioners has also been increased to 38 percent. Let us tell you that this dearness relief for pensioners will be calculated on the basis of basic pension before commutation. 38 percent dearness relief has been implemented from July 1, 2022. 

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