With effect starting on July 1, 2022, the government has increased the dearness relief (DR) component for central government employees by 4%

7th Pay Commission: Dearness relief hiked by 4% for central govt pensioners; notification issued

The government has hiked the dearness relief (DR) component for central government employees by 4% effective from July 1, 2022. The DR has been hiked to 38%, according to the office memorandum (OM) Department of Pension & Pensioners’ welfare (DOPPW).
According to the OM dated October 8, 2022, “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 34% to 38% w.e.f 01.07.2022.”

Apart from DR hike, the government has also hiked the dearness allowance DA with same percentage. The hike in DA will benefit central government employees, central government pensioners and family pensioners getting pension from the central government.

According to the tweet by DoPPW, “DOPPW India has issued orders on 08.10.2022 for enhancing Dearness Relief to Central Government pensioners/Family pensioners from 34% to 38% of basic pension/family pension. Revised rate is effective from 01.07.2022.”


DR is usually declared twice a year, in the months of September & March. According to the Pensioner’s Portal, “So in the months of January & February, DR on Pension/Family Pension will be calculated according to the DR Rates available for the month of December of the previous year. Similarly, for the month of July & August, DR will be calculated w.r.t. DR rates available for the month of June.”

These rates of DR will be applicable to the following categories:

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.llI dated 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years. The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates. All India Service Pensioners Railway Pensioners/family pensioners Pensioners who are in receipt of provisional pension 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. Note that when paying Dearness Relief, fractional rupee payments must be rounded up to the next higher rupee.

As per the DoPPW’s O.M, 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.

Dearness Relief (DR) Rates for Pensioners - 7th CPC

Doppw-pension-DRSource: Ministry of Personnel, Public Grievance & Pensions

This story originally appeared on: India Times - Author:Tax Cognition