Monday, October 21, 2019

Grant of D R 5% W E F 01.7.2019

No. 42/04/20 19-P&PW(D)

              Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners' Welfare, 
3 rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi - 110001

Date:- 21st Oct,2019

                OFFICE MEMORANDUM

Sub: Grant of Dearness Relief to Central Government pensioners/family pensioners -
Revised rate effective from 01.07.2019-reg

The undersigned is directed to refer to this Department's OM No. 42/04/2019-P&PW(D) dated 06.03.2019 on the subject mentioned above and to state 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 12% to 17% w.e.f 01.07.2019

2. These rates of DR will be applicable to (i) Civilian Central Government Pensioners/Family Pensioners including Central Govt. absorbee pensioners in
PSU/ Autonomous Bodies in respect of whom orders have been issued vide this Department'sOM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017 for restoration of full pension afterexpiry of commutation period of IS years (ii) The Armed Forces Pensioners, CivilianPensioners paid out of the Defence Service Estimates, (iii) All India Service Pensioners (iv)Railway Pensioners/family pensioners (v) Pensioners who are in receipt of provisional pension
(vi) The Burma Civilian pensioners/family pensioners and pensioners/families of
displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders haveb een issued vide this Department's OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

3. 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 DR in respect of employed family pensioners and reemployed Central Government Pre-ensioners will be regulated in accordance with the provisions contained in this Department's OM No. 45173/97-P&PW (G) dated 2.7.1999 as amended vide this Department's OM No. F.No. 38/88/2008-P&PW(G) dated 9th July, 2009. The provisions relating to regulation of DR 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 DR payable in each individual case.

7. 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, Il/34-80-II dated 23/0411981 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 21 st May,1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

8. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with the C&AG.

9. This issues in accordance with the Ministry of Finance, Department of Expenditure's OM No. 1/3/2019-E.II(B) dated 14thOctober, 2019.
Hindi version will follow.

~~tv-
(Charanjit Taneja)
Under Secretary to the Government of India

1. All Ministries/Departments of the Government of India/Chief Secretaries and AGs of
all States/UTs.

2. Copy for information to Reserve Bank of India (RBI) and all authorized
Pension Disbursing Banks.

Friday, October 11, 2019

Cabinet approved 5℅DA/DR from 01.7.2019


The Union Cabinet Chaired by Prime Minister Narendra Modi today approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise.  This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020).  This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.
The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020).
The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.
Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July