Mumbai, October 28: Bringing much-awaited festive joy for the employees and pensioners, the Central government hiked Dearness Relief by four percent along with the Dearness Allowance in September. On top of that, the Department of Pension & Pensioners' Welfare (DoPPW) published a notification that clarified details of Dearness Relief (DR) paid under the 7th Pay Commission rule.

The DoPPW, in a office memorandum, said that DR will be payable on the original basic pension before commutation with regard to the former central government employees. The department said in a notice that it received references/representations seeking clarification on whether the 'Dearness Relief is payable on the original basic pension or pension as reduced after commutation'. 7th Pay Commission: Another DA Hike Not Far Away; Here’s When Dearness Allowance of Central Government Employees Could Increase Again.

The current DR rate for central government pensioners now stands at 38 percent as per the 7th pay commission following the recent hike in September. When the government says 'Basic Pay', it refers to the salary drawn as per the applicable new structure or level in the Pay Matrix under the 7th Pay Commission. 7th Pay Commission: Good News on Fitment Factor Hike Expected Soon, Say Reports; Here’s How Much Central Government Employees’ Salary Will Increase.

On the Commutation to Pensioner, the department said, "as per Rule 10 of CCS (Commutation of Pension) Rules, 1981, an applicant who has commuted a percentage of his final pension and after commutation his pension has been revised and enhanced retrospectively as a result of government’s decision, the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and the commuted value already authorised."

(The above story first appeared on LatestLY on Oct 28, 2022 02:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).