On October 27, the Department of Pension and Pensioners’ Welfare has issued a notification saying that it has been decided to increase dearness relief for pensioners and family pensioners of the central government from 28 to 31 percent.
Employees and family pensioners receiving pension from the central government will now get the increased dearness relief money. The government has increased it from 28 percent to 31 percent. The increased rate of dearness relief will be deemed to be applicable from July 1, 2021. On October 27, the Department of Pension and Pensioners’ Welfare (DoPPW) issued a notification saying that the Central Government has decided to increase dearness relief for pensioners and family pensioners from 28 to 31 percent (7th Pay Commission). It will be deemed to be applicable from 1st July, 2021.
Who will benefit?
- Pensioners and family pensioners who have been Central Government Employees (Civil). Pensioners of PSUs and Autonomous Bodies.
- Army pensioners and family pensioners. Civilian Pensioners, Family Pensioners working in Defense Service.
- All India Service Pensioners and Family Pensioners
- Railway Pensioners and Family Pensioners
- Pensioners receiving provisional pension
- Burma Civilian Pensioners and Family Pensioners. Central Government pensioners and family pensioners displaced from Burma or Pakistan.
Calculation of Dearness Relief
In the beginning of October, the government had increased the dearness allowance of the central government from 28 per cent to 31 per cent. The government had said that the calculation of basic pay for dearness allowance would be based on the recommendations of the Seventh Pay Commission. The calculation of dearness relief will also be done on this basis. This will not include any other payment.
Earlier this month, the government had announced one time interest free festival advance for central employees. Under this, employees will be able to take an advance of 10 thousand rupees if needed. No interest will be charged on this. It can be taken through prepaid Rupay card. It is believed that this will help in increasing consumer spending. At the same time, apart from this, Finance Minister Nirmala Sitharaman has also announced a special LTC cash scheme. Central government employees will get the benefit of this.
