Diwali bonanza for pensioners! DoPPW announces dearness relief hike, check by how much pension will increase

The Department of Pension and Pensioners’ Welfare issued an Office Memorandum in the dearness relief (DR) of Central Government pensioners.

New Delhi: The Department of Pension and Pensioners’ Welfare (DoPPW), on October 27, issued an Office Memorandum (O.M.) to announce a 3% increase in the dearness relief (DR) of Central Government pensioners. 

According to the notification, pensioners will now receive DR at a rate of 31%, up 3% from the 28% rate. The latest DA rate will apply retrospectively starting from July 2021, meaning that pensioners will receive DR arrears for the month of July, August and September. 

In the Office Memorandum (O.M.), the Department of Pension and Pensioners’ Welfare (DoPPW) noted: “President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 28% to 31% of the basic pension/family pension (including additional pension/family pension) w.e.f 01.07.2021.”

According to the order, here’s the list of retired employees that will receive the benefits:

1. Civilian Central Government Pensioners/Family Pensioners including Central Govt. absorbed pensioners in PSU/Autonomous Bodies in respect of whom orders have been issued vide this Department's OM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017 for restoration of full pension after the expiry of commutation period of 15 years.

2.  The Armed Forces Pensioners/Family Pensioners, Civilian Pensioners/Family Pensioners paid out of the Defence Service Estimates.

3. All India Service Pensioners/Family Pensioners.

4. Railway Pensioners/family pensioners.

5. Pensioners who are in receipt of provisional pension. Also Read: Facebook, Google, Twitter face grilling by UK lawmakers

6. The Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders have been issued vide this Department's OM No. 23/3/2008-P&PW(B) dated 11.09.2017. Also Read: Centre releases Rs 1.59 lakh crore to states as compensation for GST shortfall