7th Pay Commission: Dearness Relief to be paid from January 1, 2017, for central government pensioners; Report

Last month the government increased the Dearness Allowance and Dearness Relief to its employees to 4 per cent from the existing 2 per cent from January 1, 2017, benefiting 48.85 lakh employees and 55.51 lakh pensioners.

New Delhi, April 7: For more than 53 lakh pensioners eagerly waiting for Dearness Relief (DR) it seems that their wait is finally over as the government has issued an order stating that the DR under the 7th Pay Commission will be paid from January 1, 2017. According to a report, the DA which is for pensioners and family pensioners will be 4 per cent after 2 per cent increase has been accepted by the government.

Ministry of Personnel, Grievances & Pensions Department of Pension & Pensioners' Welfare in a letter confirmed that is pleased to decide that the Dearness Relief admissible to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 2 per cent to 4 per cent will be effective from January 1, 2017".

Last month the government increased the Dearness Allowance and Dearness Relief to its employees to 4 per cent from the existing 2 per cent from January 1, 2017, benefiting 48.85 lakh employees and 55.51 lakh pensioners.

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Here are some latest updates on Dearness Relief under the 7th Pay Commission:

• The order stated that these orders apply to Civilian Central Government Pensioners/Family Pensioners, the Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates, All India Service Pensioners, Railway Pensioners/family pensioners, Pensioners who are in receipt of a provisional pension.
• The latest order also clarified that these orders are not applicable for the Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government pensioners from Pakistan who are Indian Nationals but receiving the pension on behalf of Government of Pakistan.
• The report also said that separate orders will be issued in respect of the above categories.
• Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee.
• Other provisions governing the grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged.
• In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.
• It will be the responsibility of the pension disbursing authorities, including the nationalised banks, etc. to calculate the quantum of DR payable in each individual case.
• The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of relief to pensioners etc. 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, 11/34-80-11 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) (CPL)/81 dated the 21st May 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.
• In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with the C&AG.
• This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their OM No.1/3/2017-E.II(B) dated 30th March 2017.