Centre issues Office Memorandum announcing 4% Dearness Relief (DR) to pensioners

Elderly couple using calculator to count Dearness Relief (DR).

New Delhi, Oct 28, 2013: The Centre issued Office Memorandum (OM) that Dearness Relief (DR) to Central Government pensioners and family pensioners is increased by 4 % effective July 1, 2023.

The Department of Pension & Pensioners’ Welfare (DoPPW) has issued order on 27.10.2023 for enhancing the Dearness Relief admissible to Central Government pensioners/family pensioners from the existing rate of 42% to 46% of the basic pension/family pension w.e.f 01.07.2023.

DR hike to benefit these pensioners

1) 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’s OM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017 for restoration of full pension after the expiry of commutation period of 15 years.

2) The Armed Forces Pensioners, and Civilian Pensioners paid out of the Defence Service Estimates.

3) All India Service Pensioners

4) Railway Pensioners/family pensioners

5) Pensioners who are in receipt of provisional pension

6) The Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders have been issued, vide this Department’s OM No. 23/3/2008-P&PW(B) dated 1 1.09.2017.

In a bonanza for central government employees and pensioners, the Union Cabinet has approved a 4 percentage point hike each in their Dearness Allowance (DA) and Dearness Relief (DR). A statement from the finance ministry said the move will benefit about 4.76 million central government employees and 6.86 million pensioners.

DA is a component of the monthly salary paid to employees to compensate for the increased cost of living due to inflation, DR is the amount provided to pensioners.