The biggest support for government employees after retirement is their pension. In such a situation, the central government has given the biggest gift and good news of the year to the retired people during the holiday season. The government has decided to increase the dearness relief i.e. DR hike given to the retired people. Because of this, millions of retirees are expected to earn a lot of money during festivals.
How much did DR Hike-
In the cabinet meeting, the central government has decided to increase the DR to the pensioners by 4 percent. With the increase in Dearness Relief, the pension of pensioners will also increase. DA Hike and DR Hike happen according to the Industrial Inflation figures. The formula by which dearness allowance increases for central employees, dearness relief for pensioners also increases with the same formula. The June 2022 data of the AICPI index is showing that this time there has been an increase of 4 percent.
Accordingly, pension will be given-
Due to the DR hike of 4 percent, the pensioners of the central government will now be given the benefit of DR at the rate of 38 percent. In the current structure in the 7th Pay Commission, all central government employees and pensioners are getting DA and DR at the rate of 34 percent. But, after the DR Hike to be held at the end of September, it will also reach 38 percent.
For example, the central employees will get three months’ salary together with the dearness allowance money. Similarly, pensioners will also get dearness relief for three months simultaneously. In this, the difference of pension of July and August will be given as arrears. At the same time, dearness relief money will be added to the September pension. Pensioners can get an idea of how much their pension will increase from their pay-grade band.
Pension will increase so much-
According to the pay-matrix of the 7th pay commission, there will be a bumper increase in the pension of an employee retired from officer grade. If it is assumed that someone’s basic salary is Rs 31550. So on 38 per cent DA hike, Rs 1262 will be added to his pension. Pension will increase by Rs 15,144 on an annual basis.