On July 14, the Union Cabinet had approved to increase Dearness Relief (DR) to retired employees. Now following this decision, the Department of Pension and Pensioners Welfare has issued an order. About 63 lakh pensioners are expected to benefit from this.
Which retired employees benefit: According to the information given by the department, the Central Government has issued an order to increase the dearness relief given to pensioners and family pensioners (including pensioners / family pensioners of the Armed Forces, All India Services and Railways). Has been given. Pensioners will now get dearness relief at the rate of 28 per cent. Earlier it was getting at the rate of 17 per cent. This rule has come into effect from 1 July 2021.
There was a ban on three additional installments: In fact, due to the Kovid-19 epidemic, three additional installments of dearness relief given to pensioners were stopped. This ban was from January 2020 to June 2021. Now the government has increased the dearness relief by 11 percent by including these withheld additional installments. Apart from this, the government has also reduced dearness allowance i.e. DA to 28 percent. About 48 lakh central employees will benefit from the increase in DA.
Benefit of increase in DA: The biggest benefit of increase in DA of central employees is going to be available on HRA. According to the rules of the 7th Pay Commission, when the dearness allowance is more than 25 percent, then the house rent allowance (HRA) will also increase. Now that dearness allowance is 28 per cent, then obviously there will be an increase in HRA. Apart from this, the amount of PF contribution will increase.
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