Dearness Relief: The central government is going to increase dearness allowance and dearness relief soon. Dearness allowance may increase by 4 percent. In this sequence, dearness relief will also increase. Dearness relief is given to pensioners. With the increase in Dearness Relief, the pension of pensioners will also increase.
According to the industrial inflation figures, the dearness allowance and relief increase. The formula by which dearness allowance increases for central employees, dearness relief for pensioners also increases with the same formula. The June 2022 data of the AICPI index is showing that this time there may be an increase of 4 percent. With the increase in DR, there will be a tremendous increase in the pension of pensioners.
Dearness Relief (DR) will be 38%
In the current structure in the 7th Pay Commission, all central government employees and pensioners are getting DA and DR at the rate of 34 percent. But, after the increase at the end of September, the dearness relief will also reach 38%. For example, the central employees will get three months’ salary together with the dearness allowance money. Similarly, pensioners will also get dearness relief for three months simultaneously. In this, the difference of pension of July and August will be given as arrears. At the same time, dearness relief money will be added to the pension of September. Pensioners can get an idea from their pay-grade band as to how much their pension will increase.
How much will the pension increase? See here DR Calculation
According to the pay-matrix of the 7th pay commission, there will be a bumper increase in the pension of an employee retired from officer grade. Here we have calculated the basic salary of a pensioner at Rs 31,550 (pay grade level-3).
Basic Pay –
Rs 31,550 Estimated Dearness Relief (DR) – 38% – Rs 11,989 per month
Existing Dearness Relief (DR) – 34% – Rs 10,727 per month
On increasing 4% Dearness Relief (DR) – Rs 1262 ( Annual dearness relief payment will come more every month
– Rs 15,144 (38% DR) after 4 per cent hike
What is the benefit to retired pensioner from cabinet secretary level?
After increasing the 4% dearness relief, the total DR will be 38%. If you calculate in the maximum salary range, then you will get dearness relief of Rs 21,622 every month on the basic salary of Rs 56,900. The total annual dearness relief will be Rs 2,59,464.
How is dearness relief calculated?
How will the DR be calculated and how will it be decided. If Dearness Relief (DR Hike) is to be increased by 4 percent, then it can be calculated on Basic Pension. If someone’s pension is Rs 20,000, then at the rate of 4 percent, it will increase by Rs 800 in a month.
