CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001

Ref: Confed./2025/Improvement in DA & DR/

Dated – 17.01.2025

To,
The Cabinet Secretary,
Government of India,
Rashtrapati Bhawan,
New Delhi -110004
Email address : cabinet[at]nic.in

Sub: Request for the improvement in computation of Dearness Allowance & Dearness Relief for Central Government Employees and Pensioners- reg.

Respected Sir,

The Confederation of Central Government Employees and Workers, represents about 7 lakhs Central Government employees, working in various Departments of Central Government Departments viz., Postal, Income tax, AG’S, Audit Departments, Survey Departments, Census, GSI, CPWD, CGHS, SREE CHITHRA etc. numbering about 130 Associations & Federations are affiliates of Confederation of Central Government employees and Workers.

The Confederation extends its warm festive Greetings and new year wishes.

The main improvements suggested in computation of Dearness Allowance & Dearness Relief of Central Government employees & pensioners sought are as below; –

1) The DA formula is as below:

For Central Government Employees:
DA = { (Average of AICPI (Base year 2016=100) for the last 12 months – 115.76)/115.76 } x 100

For Public Sector Employee:
DA = { (Average of AICPI (Base year 2001=100) for the last 3 months – 126.33)/126.33 } x 100

The above formula needs modifications.

The formula to calculate the Dearness Allowance (DA) for bank employees is:

• DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100

2) The average of 12 months should be replaced by a three months average that means variable DA should be given so that the employees get compensated by actual price rise every three months.as in public sector employees and Banks employees.

The DA of banking employees are revised every quarter i.e. Feb-April, May-July, August- October and November- Jan every year

If a price rise is taking place in January, it is compensated partially after 12 months. The DA should be calculated and paid every three months instead of six months

3) Point to point DA should be provided, now the DA is rounded off to lowest value if we are eligible for 42.90 % DA we are sanctioned only 42% DA, the 0.9 % DA is being deprived to the CG employees for six months, the point-to-point DA should be provided to us as in the case of Banks and LIC employees get the DA even point to point DA.

4) Construct a separate consumer index for the Central Government Employees and Pensioners.

The items used for calculation of the Consumer price index is 465 items after the new series 2016 was adopted by the Government. As many of these items are not used by the central government employees in day-to-day life, it neutralizes the effect of price rise of the actual items used by the central government employees and pensioners, we are getting less dearness allowance than the actual price rise happening. Hence there is a need to construct a separate consumer index for the central government employees and pensioners.

Recommendation of 6th CPC vide para no 4.1.13

The Commission is of the view that the National Statistical Commission may be asked to explore the possibility of a specific survey covering Government employees exclusively, so as to construct a consumption basket representative of Government employees and formulate a separate index. Meanwhile, the Government may continue to use the AICPI (IW) for estimating the DA.

Hence separate DA / AICPI should be formed for Government employees

5) The Labour Bureau, which is an attached office of the M/O Labour & Employment, has been compiling Consumer Price Index for Industrial workers every month on the basis of retail prices collected from 317 markets spread over 88 industrial important centres in the country. The index is compiled for 88 industrial important centres and All India Consumer Price Index is released on the last working day of succeeding month by Ministry Of Labour & Employment, Labour Bureau Chandigarh on last day of the month on which the DA is calculated every six months.

The Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the retail prices are showing different retail rates, the retail prices of essential commodities are at higher end including that of state Government run co-operative societies compared to the retail prices maintained by Labour Bureau, Shimla, not on prevailing market retail rates, net difference of price of commodities varies up to 30 %.

The retail prices are higher in other Central Government Departments, compared to the Labour Bureau, Shimla such as Directorate of Economics & Statistics prices which is also a Central Government Department https://rpms.dacnet.nic.in/

&

Department Of Consumer Affairs (Price Monitoring Division) https://fcainfoweb.nic.in/

Therefore, the CG employees & pensioners are deprived of proper Consumer Price Index as retail prices maintained by Labour Bureau, Shimla are adopting lower prices.

The Dearness Allowance and Dearness relief is based upon the Consumer Price Index (CPI) points.

Hence proper methodology shall be adopted at arriving at the retail prices of the items, which leads to construction of the Consumer Price Index (CPI).

The above main improvements suggested in Dearness Allowance & Dearness Relief of Central Government employees & pensioners is requested to be implemented at the earliest.

With Regards,

Yours Sincerely,
(S.B. Yadav)
Secretary General

Copy to,
The Secretary General, Staff Side, NC JCM New Delhi.

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Co No.45/08/ 2017-FF(P)
Government of India/ Bharat Sarkar
Ministry of Home Affairs/ Grih Mantralaya
Freedom Fighters & Rehabilitation Division

2nd Floor, NDCC-II Building,
Jai Singh Road, New Delhi – 110 001,
Dated, the 17th December , 2024.

To

The Pr. Chief Controller of Accounts(Home),
Ministry of Home Affairs, :
MDCNS, New Delhi- 110 001

Subject: Grant of Dearness Relief to Central Freedom Fighter Pensioners w.e.f. 01.07.2024 – regarding

Sir,
I am directed to refer to this Ministry’s letter No. 45/08/2017-FF(P) dated 22.03.2024 (copy enclosed) regarding 48% Dearness Relief to be paid to the freedom fighter pensioners w.e.f. 01.01.2024 and to say that recently Dearness Relief in respect of Central Government pensioners has been enhanced by 3% by the Government of India, Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare, New Delhi’s O.M. No.42/02/ 2024-P&PW(D) dated 30.10.2024. Hence, the Dearness Relief admissible to the Central Freedom Fighter/ Spouse/ Daughter pensioners shall be enhanced from the existing rate of 48% to 51% w.e.f. 01.07.2024. The revised amount of pension for various categories of pensioners after increase of 3% DR, i.e. total 51% Dearness Relief, will be as follows:

2. Further, it is also clarified that as per Policy Guidelines dated 06.08.2014, TDS is not applicable in respect of Central Samman Pension.

3. This issues with the approval of Competent Authority.

Yours faithfully,

(R.C. Meena)
Director

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Ministry of Personnel, Public Grievances & Pensions

Department of Pension and Pensioners’ Welfare Notified additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.07.2024.

The Union Cabinet has approved the additional installment of Dearness Allowance and Dearness Relief @ 3% to Central Government employees and pensioners due from 01.07.2024. In pursuance, DoPPW has issued OM dated 30.10.2024 for all Central Government Pensioners/ Family Pensioners.

Therefore, Central Government Pensioners/ Family Pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2024 from the existing rate of 50% to 53% of the basic pension/family pension (including additional pension/family pension) w.e.f 01st July, 2024.

These rates of DR will be applicable to (i) Civilian Central Government Pensioners/ Family Pensioners including Central Government 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 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.

पेंशन और पेंशनभोगी कल्याण विभाग ने केंद्र सरकार के कर्मचारियों के लिए महंगाई भत्ते और पेंशनभोगियों के लिए महंगाई राहत की अतिरिक्त किस्त अधिसूचित की, जो 01.07.2024 से देय है

इस तरह, केंद्र सरकार के पेंशनभोगी/पारिवारिक पेंशनभोगी 01 जुलाई, 2024 से मूल पेंशन/पारिवारिक पेंशन (अतिरिक्त पेंशन/पारिवारिक पेंशन सहित) की मौजूदा दर 50 प्रतिशत  से बढ़कर 53 प्रतिशत तक क्रमशः महंगाई भत्ते और महंगाई राहत की उच्च राशि के हकदार हो जाएंगे ।

– PIB

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Cabinet

Cabinet approves Unified Pension Scheme

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Unified Pension Scheme (UPS).

The salient features of the UPS are:

1. Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
2. Assured family pension: @60% of pension of the employee immediately before her/his demise.
3. Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
4. Inflation indexation: on assured pension, on assured family pension and assured minimum pension
   
   Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
   
   
5. lump sum payment at superannuation in addition to gratuity

1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension

PIB

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Table of Contents

Payment of DR to Railway Pensioners from Jan 2024- Railway Board order

GOVERNMENT OF INDIA (भारत सरकार)
Ministry of Railways (रेल मंत्रालय)
Railway Board (रेलवे बोर्ड)

PC-VII No.: 214
RBE No.28/2024

File No. PC-VII/2016/I/7/2/3

New Delhi, dated: 20.03.2024

The General Manager/CAOs(R),
All Zonal Railways & Production Units,
(As per standard mailing list)

Sub: – Grant of Dearness Relief to Railway pensioners/family pensioners — Revised rate effective from 01.01.2024.

A copy of Office Memorandum No. 42/02/2024-P&PW/(D) dated 13.03.2024 of Ministry of Personnel, Public Grievances & Pensions (Department of Pension and Pensioners’ Welfare) on the above subject is enclosed herewith for information and compliance. This order shall apply mutatis mutandis on Railways also.

2.This issues with the concurrence of Finance Directorate of the Ministry of Railways.

3. Hindi version is attached below.

Encl. As above.

(Jaya Kumar G)
Deputy Director, Pay Commission-VII & HRMS
Railway Board

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Cabinet approves additional instalment of 4% Dearness Allowance and Dearness Relief to Central Government employees and pensioners

49.18 lakh employees and 67.95 lakh pensioners to benefit

4% benefit to cost Rs.12,868.72 crore per annum to exchequer

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2024 representing an increase of 4% over the existing rate of 46% of the Basic Pay/Pension, to compensate against price rise.

 The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,868.72 crore per annum.  This will benefit about 49.18 lakh Central Government employees and 67.95 lakh pensioners.

 This increase is in accordance with the accepted formula, which is based on the recommendations of the 7^th Central Pay Commission.

PIB

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Government of India
Ministry of Finance
Department of Expenditure

Rajya Sabha
Unstarred Question No. 689

To be answered on Tuesday, 13 December, 2022
Agrahayana 22, 1944 (Saka)

Release of arrears of Dearness Relief of 18 months to pensioners

689: Shri Naranbhai J. Rathwa:

Will the Minister of Finance be pleased to state:

(a) whether the Government has received several representations regarding the release of arrears of Dearness Relief to Central Government pensioners of 18 months i.e. from January 2020 to June, 2021:

(b) if so, the details thereof: and

(c) whether Government is sincerely considering the release of 18 months arrears to pensioners, if not, the reasons therefor?

Answer

Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary)

(a) & (b) Yes, Sir. Several Representations regarding release of arrears of 18 months of DA/DR payable to Central Government employees/pensioners have been received from various Centra! Government employees/pensioners’ associations such as National Council (JCM), National Federation of Indian Railway Men (NFIR), All India Railway Men’s Federation (AIRF), All India Retired Railway Men’s Federation (AIRRF), JCOs/OR Veterans Association (JOVA), Bhartiya Railway Karamchari Union (BRKU), Bhartiya Pension Manch, National Ex-Servicemen Co-ordination Committee and Veteran Association etc.

(c) The decision to freeze three instalments of DA/DR to Central Government employee/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19 which caused economic disruption so as to ease pressure on Government finances.

As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond Financial Year 2020-21, release of arrears of DA/DR was not considered feasible.

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No. 42/07/2022-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi -110003
Dated 31st Oct, 2022

OFFICE MEMORANDUM

Sub:- Grant of Dearness Relief in the 5th CPC series effective from 01.07.2022 to CPF beneficiaries in receipt of basic ex-gratia payment-reg

The undersigned is directed to refer to this Department’s OM of even no. dated 11.05.2022 and to say that the President is pleased to decide that the Dearness Relief admissible to the CPF beneficiaries in receipt of basic ex-gratia payment in the 5th CPC series shall be enhanced w.e.f 01.07.2022 in the following manner :-

(i) The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 and 31.12.1985, and are entitled to basic ex-gratia @ Rs.3000, Rs.1000, Rs.750 & Rs.650 for Group A, B, C & D respectively w.e.f 4th June,2013 vide OM No. 1/10/2012-P&PW(E) dtd. 27th June, 2013 shall now be entitled to enhanced Dearness Relief from 381% of the basic ex-gratia to 396% of the basic ex-gratia w.e.f 01.07.2022.

(ii) The following categories of CPF beneficiaries shall be entitled to enhanced Dearness Relief from 373% of the basic ex-gratia to 388% of the basic ex-gratia w.e.f 01.07.2022:-

• (a) The widows and eligible dependent children of the deceased CPF beneficiary who had retired from service prior to 01.01.1986 or who had died while in service prior to 01.01.1986 and are entitled to revised ex-gratia @ Rs.645/-p.m w.e.f 04 June, 2013 vide OM No 1/10/2012 -P&PW(E) dated 27th June 2013.
• (b) Central Government employees who had retired on CPF benefits before 18.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs.659/-, Rs.703/- and Rs.965/-.

2. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee.

3. 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.

4. 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.

5. This issues in pursuance of Ministry of Finance, Department of Expenditure’s OM No. 1/3(2)/2008-E.II(B) dated 12th October, 2022.

6. Hindi version will follow.

(Charanjit Taneja)
Under Secretary to the Government of India

Download Grant of Dearness Relief in the 5th CPC series effective from 01.07.2022 to CPF beneficiaries in receipt of basic ex-gratia payment PDF

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No. 42/15/2022 – P&PW(D)/1
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi – 110003
Date: 25th Oct, 2022

OFFICE MEMORANDUM

Sub:- Clarification regarding Dearness Relief payable on Original Basic Pension -reg

In accordance with Rule 52 of CCS (Pension) Rules 2021, Dearness Relief on Pension and Family Pension against price rise is granted to Pensioners including the persons drawing compassionate allowance under Rule 41 and Family Pensioners at such rates and subject to such conditions as the Central Government may specify from time to time.

2. References/ Representations have been received in this Department seeking clarification whether the Dearness Relief is payable on original basic pension or on pension as reduced after commutation. It is clarified that dearness relief is payable on the original basic pension before commutation or such basic pension before commutation as revised on implementation of recommendations of Pay Commission etc. and not on the pension as reduced after deduction of commuted pension.

Sd/-
(Charanjit Taneja)
Under Secretary

1. All Ministries/ Departments of the Government of India (as per standard distribution list).
2. C&AG of India, UPSC, etc. as per standard endorsement list.

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Dearness Relief to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 34% to 38% w.e.f 01.07.2022.

No. 42/07/2022 -P&P W(D)
Government of India
Ministry of Personnel, Public, Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 8th Oct 2022

OFFICE MEMORANDUM

Sub: Grant of Dearness Relief to Central Government pensioners/family pensioners – Revised rate effective from 01.07.2022.

The undersigned is directed to refer to this Department’s OM No. 42/07/2022 – P&PW(D) dated 05.04.2022 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 34% to 38% w.e.f 01.07.2022.

2. 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.II 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.

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.

Dearness Relief Order to Central Government pensioners/family pensioners from 1st January 2022

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, II/34-80-II 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)/81 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. 1/3/2022-E.II(B) dated 03.10.2022.

Hindi version will follow.

(Charanjit Taneja)
Under Secretary to the Government of India

DR order July 2022 PDF

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

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