7th pay commission: The central government has announced an increase in employees’ Dearness Allowance (DA) and pensioners’ Dearness Relief (DR) beginning July 1, 2021. These allowances will be increased by 11%, bringing them to 28% of basic pay/pension from 17% previously.

According to an Office Memorandum (OM) shared by the Ministry of Personnel, Public Grievances & Pensions’ Department of Pension & Pensioners’ Welfare, the Dearness Relief (DR) admissible to Central Government pensioners/family pensioners will be increased from 17% to 28% of the basic pension/family pension (including additional pension/family pension) with effect from July 1, 2021.

Notification says

According to the notification, these rates will apply to Civilian Central Government Pensioners/Family Pensioners, as well as Central Government absorbed pensioners in Public Sector Undertakings/Autonomous Bodies. Orders have been issued to restore full pension after the 15-year commutation period expires, it adds.

Pensioners

Armed Forces pensioners/family Pensioners and Civilian Pensioners/ Family Pensioners paid from Defence Service Estimates, All India Services Pensioners/ Family Pensioners, Railway Pensioners/ Family Pensioners, Pensioners receiving a provisional pension, Burma Civilian Pensioners/ Family Pensioners, and displaced Pensioners/ Family Pensioners from Pakistan will also be affected.

Office Memorandum (OM) informs

The OM also states that payments for Dearness Relief that involve a fraction of a rupee will be rounded up to the next highest rupee. Other provisions governing the grant of Dearness Relief to employed family pensioners and re-employed Central Government pensioners will be governed by the provisions in the OM dated July 7, 1999, as amended from time to time. The provisions governing the regulation of Dearness Relief where a pensioner receives more than one pension will not change.

It went on to say that in the case of retired Supreme Court and High Court judges, the Department of Justice would issue the necessary orders separately. The pension disbursing authorities, including nationalised banks, will be responsible for calculating the amount of Dearness Relief payment in each individual case.

Dearness Relief to pensioners

The Accountant General’s Office and authorised Pension Disbursing Banks are requested to arrange payment of Dearness Relief to pensioners/Family Pensioners based on these instructions without waiting for further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India, according to the OM.

OM sai that these orders are issued after consultation with the Comptroller and Auditor General of India