In pursuance of the decision of the Cabinet on 14.07.2021, Department of Pension & Pensioners’ Welfare has issued orders on 22.07.2021 for increasing the Dearness Relief to pensioners and family pensioners of the Central Government (including pensioners/ family pensioners of Armed Forces, All India Services and Railways) with effect from 01.07.2021 to 28% of the basic pension/family pension (including additional pension/family pension), representing an increase of 11% over the existing rate of 17%.
In view of the unprecedented situation which arose due to COVID-19 pandemic, three additional instalments of Dearness Relief to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen.
Now, the Government has issued orders to increase the Dearness Relief to pensioners/family pensioners with effect from 01.07.2021 to 28% of the basic pension/family pension. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17% of basic pension/family pension.
