Increase in the Rate of Dearness Relief to Pensioners

• 15 Dec 2021

Why in News

• On December 14, 2021, the Madhya Pradesh government issued an order to increase the rate of dearness relief to the pensioners of the state. This new arrangement will be considered effective from October 1, 2021.

Key Points

• The Madhya Pradesh Finance Department has increased the dearness relief to the pensioners of the state government by 10 percent. Those who were getting pension under the 6th pay scale, their dearness relief has increased by 10 percent to 164 percent. Similarly, those whose pension was getting under the seventh pay scale, their dearness relief will increase by 5 percent to 17 percent.
• Dearness relief on family pension will not be eligible if a person is placed in service on compassionate grounds due to the death of his spouse, but if the spouse is in service at the time of his death, then the husband He/she will be eligible for dearness relief on the family pension payable on account of the death of the wife.
• Dearness relief will also be admissible on the additional pension payable to the pensioners of the age of 80 years or more.
• Employees dismissed or removed from service will also be eligible for this dearness relief on the compassionate allowance accepted.
• Such pensioners, who have got a part of their pension commuted, will be given dearness relief on their basic pension (pre-commutation pension).
• This order will also be applicable to such retired employees of the state government, who have drawn lump sum amounts on civilians in undertakings, self-governing institutions, boards / corporations etc. and who have become eligible for repatriation of one-third of the pension under the Finance Department.