- Date : 11/10/2022
- Read: 3 mins
7th Pay Commission hikes Dearness Relief for Central Government Pensioners
Central Government employees get a steady pension after they retire from active duty. If they pass away post-retirement, the Government pays a family pension to the surviving family of the pensioner. This pension creates a steady income source for retired individuals to enjoy their retired life without financial worries.
A component of the pension is the Dearness Relief of DR, which is paid to allow retirees to face the inflating cost of goods and services. The Government pays relief to its retired employees. The rate of the Dearness Relief is reviewed and revised twice a year, in January and July. Usually, the Government hikes the rate of the DR twice a year, factoring in the prevalent inflation rate.
The change in the Dearness Relief in 2022
For the second half of 2022, the 7th Pay Commission has revised the Dearness Relief rates and increased it by 4%. So, for Central Government employees, the revised Dearness Allowance rates stand at 38% instead of the previous 34%.
The change would come into effect retrospectively from 1st July 2022. This means that pensioners would get enhanced pensions from July 2022.
Related - Find out what the 7th Pay Commission is all about
Who will benefit from the hike?
The following types of Central Government pensioners would benefit from the increase in Dearness Relief –
- Civilian and family pensioners of the Central Government. It would also include the pensioners of autonomous bodies or Public Sector Undertakings whom the Government absorbed and for whom the Government issued a notification to restore the full pension after the completion of 15 years of commutation.
- All India Service pensioners
- Pensioners of the armed forces as well as civilian pensioners whose pension is paid from the Defence Service Estimates
- Pensioners or family pensioners of railway employees
- Pensioners receiving provisional pensions
- The pensioners or family pensioners of Burma and pensioners or family pensioners of the displaced Government pensioners from Pakistan or Burma
Previous hikes in the Dearness Relief rates
The Government usually hikes the DR rates twice every year. However, it is not guaranteed. Moreover, the rate of the hike is also not fixed. It depends on the inflation rate in the economy and the Pay Commission’s decision.
The previous hikes in the rates have been as follows –
With a hike in the Dearness Relief, pensioners would stand to receive a higher pension. Given the rising inflation and the increasing cost of goods and services, the hiked pension would allow the pensioners to meet their rising lifestyle costs.
So, the move benefits employees, especially now that the festival season is kickstarting.
Related - The Dearness Allowance has also been hiked. Find out how much
Central Government employees get a steady pension after they retire from active duty. If they pass away post-retirement, the Government pays a family pension to the surviving family of the pensioner. This pension creates a steady income source for retired individuals to enjoy their retired life without financial worries.
A component of the pension is the Dearness Relief of DR, which is paid to allow retirees to face the inflating cost of goods and services. The Government pays relief to its retired employees. The rate of the Dearness Relief is reviewed and revised twice a year, in January and July. Usually, the Government hikes the rate of the DR twice a year, factoring in the prevalent inflation rate.
The change in the Dearness Relief in 2022
For the second half of 2022, the 7th Pay Commission has revised the Dearness Relief rates and increased it by 4%. So, for Central Government employees, the revised Dearness Allowance rates stand at 38% instead of the previous 34%.
The change would come into effect retrospectively from 1st July 2022. This means that pensioners would get enhanced pensions from July 2022.
Related - Find out what the 7th Pay Commission is all about
Who will benefit from the hike?
The following types of Central Government pensioners would benefit from the increase in Dearness Relief –
- Civilian and family pensioners of the Central Government. It would also include the pensioners of autonomous bodies or Public Sector Undertakings whom the Government absorbed and for whom the Government issued a notification to restore the full pension after the completion of 15 years of commutation.
- All India Service pensioners
- Pensioners of the armed forces as well as civilian pensioners whose pension is paid from the Defence Service Estimates
- Pensioners or family pensioners of railway employees
- Pensioners receiving provisional pensions
- The pensioners or family pensioners of Burma and pensioners or family pensioners of the displaced Government pensioners from Pakistan or Burma
Previous hikes in the Dearness Relief rates
The Government usually hikes the DR rates twice every year. However, it is not guaranteed. Moreover, the rate of the hike is also not fixed. It depends on the inflation rate in the economy and the Pay Commission’s decision.
The previous hikes in the rates have been as follows –
With a hike in the Dearness Relief, pensioners would stand to receive a higher pension. Given the rising inflation and the increasing cost of goods and services, the hiked pension would allow the pensioners to meet their rising lifestyle costs.
So, the move benefits employees, especially now that the festival season is kickstarting.
Related - The Dearness Allowance has also been hiked. Find out how much
