Pension Hike: Pensioners should rejoice! The government said these seniors' benefits would rise

 Pension Hike: Pensioners should rejoice! The government said these seniors' benefits would rise

Pension Hike: The Department of Pension and Pensioners’ Welfare (DoPPW) has provided information on who will be capable of receiving Enhanced Dearness Relief (DR) along with how it will be computed in an office memo dated October 27, 2023.

The Department of Pension and Pensioners’ Welfare (DoPPW) has provided information on who would be eligible for Enhanced Dearness Relief (DR) and how it will be computed in an office memo dated October 27, 2023. The Finance Ministry raised the dearness relief (DR) for retirees of the federal government earlier this month from 42% to 46%. On July 1, 2023, the amended dearness relief went into force.

Who among the retirees will benefit?

DoPPW states that retirees from the Central Government or their families, pensioners from the Defense Sector Armed Forces, pensioners from the All India Service, pensioners from the Railways, and pensioners from Civilians would all benefit from higher DR. In addition, this payment will be paid to Provisional Pensioners, Family Pensioners, and All India Service Pensioners. The United States Department of Justice will issue necessary orders separately for retiring Supreme Court and High Court justices.

To what extent will it increase?

There has been a 4% rise in dearness alleviation. The monthly pension of retired central government workers would rise in tandem with the increase in DR. For instance, retirees of the federal government get a baseline monthly pension of Rs 40,100. Under 42 percent dearness relief, the pensioner received Rs 16,842 in disability benefits. With the most recent rise, his monthly DR would be Rs 18,446. Thus, his monthly pension would rise by Rs 1,604 as a result.

Recipients of increased dearness relief are expected to get it shortly, as DOPPW has instructed banks to begin DR disbursements to retirees and family pensioners immediately, without waiting for any more directives.