Central Government pensioners/family pensioners shall be enhanced from the existing rate of 17% to 28% of the basic pension/family pension (including additional pension/family pension) with effect from 1st July 2021.
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
New Delhi – 110003
July 22, 2021
Subject: Revised rates of Dearness Relief to Central Government Pensioners/Family Pensioners w.e.f. 01.07.2021
The undersigned is directed to refer to Ministry of Finance (Department of Expenditure) Office Memorandum No. 1/1/2020-E-II(B), dated 23.04.2020, vide which instalments of Dearness Relief to pensioners/family pensioners due from 01.01.2020, 01.07.2020 and 01.01.2021, were frozen and to say that the President is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 17% to 28% of the basic pension/family pension (including additional pension/family pension) with effect from 1st July 2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Relief, earlier determined vide this Department’s OM No. 42/04/2019- P&PW(D) dated 21.10.2019, shall remain at 17% of basic pension/family pension for the period from 01.01.2020 till 30.06.2021.
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2. These rates of Dearness Relief will be applicable to:
i. Civilian Central Government Pensioners/Family Pensioners including Central Government 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 expiry of commutation period of 15 years.
ii. Armed Forces pensioners/family pensioners and Civilian pensioners/ family pensioners paid out of the Defence Service Estimates.
iii. All India Services pensioners/family pensioners.
iv. Railway pensioners/family pensioners.
v. Pensioners who are in receipt of provisional pension.
vi. The Burma Civilian pensioners/family pensioners and displaced pensioners/family pensioners from 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.
The payment of Dearness Relief involving a fraction of a rupee shall be rounded off to the next higher rupee.
4. Other provisions governing grant of Dearness Relief in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in this Department’s OM No. 45/73/97-P&PW (G), dated 2.7.1999, as amended from time to time. The provisions relating to regulation of Dearness Relief where a pensioner is in receipt of more than one pension will remain unchanged.
5. In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.
6. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of Dearness Relief payable in each individual case.
7. The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of Dearness Relief to pensioners/family pensioners on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528-TA, II/34-80-II, dated 23/04/1981, of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.
8. In their application to the persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller & Auditor General of India.
9. These issues in pursuance of Ministry of Finance, Department of Expenditure’s OM No. 1/1/2020-E. I1(B) dated 20″ July, 2021.
10. Hindi version will follow.
(Sanjiv Narain Mathur)
Joint Secretary to the Government of India
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