Clarification on Dearness Relief for Pensioners by Central Government

Since the government has increased the Dearness Relief (DR) and Dearness Allowance (DA), the pensioners have been confused if the hiked DR will be applicable on the original basic pension before commutation or after the deduction of commutation.

Let me begin by telling you that the Government of India increased the DA and DR at the end of September which was applicable from 1st July, 2022. Since then, the central government employees taking pension were confused if it is applicable to the original basic pension.

To clear out the same doubt, the Central Government has released a clarification on Dearness Relief for pensioners.

The Department of Pension & Pensioners’ Welfare issued a statement saying, “References/Representations have been received in this Department seeking clarification whether the Dearness Relief is payable on original basic pension or on pension as reduced after commutation. It is clarified that dearness relief is payable on the original basic pension before commutation or such basic pension before commutation as revised on implementation of recommendations of Pay Commission etc. and not on the pension as reduced after deduction of commuted pension.”

We hope this clarification will put the entire concern of the pensioners to rest and they will be able to enjoy their additional Dearness Relief benefits to its fullest extent.

In case you do not know what Dearness Relief is, then I suggest you to check my last article on the same topic: 7th Pay Commission: Dearness Allowance (DA) & Dearness Relief (DR) up by 4%.

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