The Department of Pension and Pensioners’ Welfare (DoPPW) has confirmed that the arrears resulting from the recent 3% hike in Dearness Relief (DR) for central government pensioners will be disbursed in October 2024.

Earlier this month, the government announced a 3% increase in both Dearness Allowance (DA) for employees and DR for pensioners, bringing the total to 53% of basic salary. This hike benefits a wide range of pensioners, including civilian, Armed Forces, and Railway pensioners.

Key Points:

  • Delayed Arrears Payment: The payment of DR arrears will not be processed before the pension disbursement scheduled for October 2024.
  • DA and DR Hike: The Centre recently approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR), bringing the total to 53% of the basic salary for central government employees and pensioners, respectively.
  • Wide-Ranging Benefits: This hike will positively impact a diverse group of pensioners, including civilian, Armed Forces, and Railway pensioners, as well as those receiving provisional pensions and displaced government pensioners from Burma and Pakistan.
  • Rounding Up of Fractional Amounts: Any fractional amount resulting from the DR calculation will be rounded up to the nearest whole rupee.
  • Existing Regulations Apply: The existing rules will continue to govern employed family pensioners and re-employed central government pensioners. Separate orders will be issued for retired Supreme Court and High Court judges.
  • Pension Disbursing Authorities’ Role: Nationalized banks and other pension disbursing authorities are instructed to calculate and process the DR for each pensioner without requiring additional instructions. This decision aligns with constitutional requirements and has been made in consultation with the Comptroller and Auditor General of India.

Looking Ahead:

As we await the October 2024 pension disbursement, central government pensioners are advised to stay updated with the latest information from the DoPPW and their respective pension disbursing authorities.