Introduction: The Government of India’s Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare, has issued an Office Memorandum on October 27, 2023, regarding the revision of Dearness Relief for Central Government pensioners and family pensioners. This article provides a detailed analysis of the changes.
Detailed Analysis:
1. Rate Enhancement: The Office Memorandum announces an increase in the Dearness Relief rate from 42% to 46% of the basic pension/family pension, effective from July 1, 2023. This rate enhancement aims to provide pensioners and their families with increased financial support to cope with the rising cost of living.
2. Applicability: The revised rates of Dearness Relief will apply to various categories of pensioners, including civilian Central Government pensioners, Armed Forces pensioners, All India Service pensioners, Railway pensioners, pensioners receiving provisional pension, and Burma Civilian Pensioners. Additionally, it covers pensioners and families of displaced Government Pensioners from Burma/Pakistan.
3. Rounding Off: The payment of Dearness Relief, involving a fraction of a rupee, will be rounded up to the next higher rupee, simplifying the disbursement process.
4. Provisions for Different Pensioners: The Office Memorandum addresses specific provisions for employed family pensioners and re-employed Central Government Pensioners, in line with the rules outlined in Rule 52 of CCS (Pension) Rules, 2021.
5. Retired Judges: The document mentions that necessary orders for retired Judges of the Supreme Court and High Courts will be issued separately by the Department of Justice.
6. Calculation Responsibility: It is the responsibility of pension disbursing authorities, including nationalized banks, to calculate the quantum of Dearness Relief payable to each individual pensioner.
7. Instructions for Payment: The Office Memorandum instructs Accountant General offices and authorized Pension Disbursing Banks to arrange for the payment of Dearness Relief to pensioners and family pensioners based on the provided instructions, without awaiting further directives from the Comptroller and Auditor General of India and the Reserve Bank of India.
8. Consultation with C&AG: These orders have been issued in consultation with the Comptroller and Auditor General of India, in compliance with Article 148(5) of the Indian Constitution, especially concerning personnel in the Indian Audit and Accounts Department.
9. Reference to Ministry of Finance: The issuance of this memorandum is in accordance with the Ministry of Finance, Department of Expenditure’s OM No. 1/4/2023-E.II(B) dated 20.10.2023.
Conclusion: The revision of Dearness Relief for Central Government pensioners and family pensioners is a crucial step to provide enhanced financial support and combat the increasing cost of living. The Office Memorandum provides clear guidelines for the implementation of the revised rates, ensuring a smoother disbursement process and alleviating the financial burden on pensioners and their families. It is imperative that the relevant authorities and pension disbursing banks adhere to these instructions promptly to facilitate the seamless distribution of Dearness Relief.
Hindi version of this memorandum will be available shortly, catering to a broader audience and ensuring that all concerned parties are well-informed about these changes.
No. 42/04/2023-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi-110003
Date:- 27th October, 2023
OFFICE MEMORANDUM
Sub: Grant of Dearness Relief to Central Government pensioners/family pensioners —Revised rate effective from 01.07.2023.
The undersigned is directed to refer to this Department’s OM No. 42/04/2023-P&PW(D) dated 06.04.2023 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 42% to 46% of the basic pension/family pension (including additional pension/family pension) w.e.f 01st July,2023.
2. These rates of DR will be applicable to the following categories:-
(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’s OM No. 4/34/2002-P&PW(D)Vo1.II dated 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years.
(ii) The Armed Forces Pensioners/Family Pensioners and Civilian Pensioners/Family Pensioners paid out of the Defence Service Estimates.
(iii) All India Service Pensioners/Family 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 have been 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 re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in Rule 52 of CCS (Pension) Rules, 2021 and this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999 as amended from time to time. 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 Dearness Relief to Pensioners/Family Pensioners 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) (CGL)/8 I dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.
8. In- so far as the persons serving in Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
9. This issues in accordance with the Ministry of Finance, Department of Expenditure’s OM No. 1/4/2023-E.II(B) dated 20.10.2023
Hindi version will follow.
(Sanjiv Narain Mathur)
Additional Secretary to the Government of India
1. All Ministries/Departments of the Government of India
2. Chief Secretaries and AGs of all States/UTs.
3. CMDs/CPPCs of all authorised Pension Disbursing Banks
4. C&AG of India, UPSC, etc. as per standard endorsement list.
5. Reserve Bank of India (RBI) for Information.
