The Central Government has issued a clarification relating to the fee of dearness reduction, eradicating the doubts of its retired staff. In this info issued by the Pension Department, it has been stated that the dearness reduction will likely be paid to the pensioners on the premise of their outdated fundamental pension and never on the decreased pension after commutation.
New Delhi. The central authorities has given large news for pensioners. The authorities has issued a clarification relating to Dearness Relief (DR). The Pensioners and Welfare Department, which comes below the Ministry of Personnel, has stated that those that have retired, dearness allowance will likely be paid on the premise of outdated and unique fundamental pension. The involved division has additionally issued an workplace memorandum on this regard.
What is within the clarification
The Pensioners’ Welfare Department has stated that many questions had come to it, wherein it was requested whether or not Dearness Allowance is being given on fundamental pension or has been decreased after commutation on pension. On this, the division stated that dearness reduction is given on the essential pension earlier than commutation or on the essential pension earlier than commutation primarily based on the suggestions of the Pay Commission. After deduction of commuted pension, dearness reduction shouldn’t be being paid on pension.
With this clarification, the division has cleared the dilemma of pensioners that dearness reduction is paid to them on the premise of unique fundamental pension and never on the premise of decreased pension after commutation.
Why get dearness reduction
Under sub-rule 52 of the Pension Rules 2021, pension reduction is paid to retired staff for reduction amid rising inflation. This quantity is given to the pensioner or his beneficiary. The authorities declares the rise each half yr and on the time of accelerating the DA for the workers, the DR is introduced for the retired staff.
DR is now 38 p.c
Under the seventh Pay Commission, the central authorities has not too long ago elevated the dearness allowance of its staff to 38 p.c, whereas the dearness reduction of pensioners in the identical proportion has elevated to 38 p.c. For pensioners, this dearness reduction will likely be calculated on the premise of fundamental pension earlier than commutation. This dearness reduction of 38 p.c has been applied from July 1, 2022. Last month, the federal government had elevated the DA and DR by 4 per cent in a single lump sum.