Bank Dearness Relief (BDR) for pensioners is a financial benefit provided to retired bank employees to help offset the impact of inflation on their pension income. This relief is typically calculated as a percentage of the basic pension and is adjusted periodically based on changes in the Consumer Price Index (CPI).
BDR or DR ensures that pensioners maintain their purchasing power despite rising living costs. It is an essential component of the overall pension package, designed to support retirees’ financial stability and well-being. Let’s go to the real time DR values for bank pensioners as per AICPIN which is similar to DA for Bankers paid for working bank employees.
Bank Dearness Relief for Pensioners
The below is the communication about Bank Dearness Relief neutralization for pensioners and family pensioners for the period who retires after the date noted against (from 01.01.1986) in the table where the amount of ex-gratia to be paid for bank pensioners as DR is as follows
| Period | Average CPI | DR % for pensioners who retires on or after 01.01.1986 | DR % for pensioners who retires on or after 01.11.1992/01.07.1993 | DR % for pensioners who retires on or after 01.01.1998 | DR % for pensioners who retires on or after 01.11.2002 | DR % for pensioners who retires on or after 01.11.2007 | DR % for pensioners who retires on or after 01.11.2012 | DR % for pensioners who retires on or after 01.11.2017 | DR % for pensioners who retires on or after 01.11.2022 |
|---|---|---|---|---|---|---|---|---|---|
| August 2024 to January 2025 | 9218.74 (1960=100) 140.23 (2016=100 series) | 1443.18 | 705.95 | 451.92 | 311.76 | 239.25 | 119.40 | 50.12 | 17.20 |
| February 2024 to July 2024 | 9122.33 | 1427.77 | 697.9 | 446.4 | 307.62 | 235.8 | 117.1 | 48.51 |
Bank Dearness Relief for Surviving Pre 01.01.1986 Retirees
As per the directive contained in GOI, Ministry of Finance, Dept of Economic Affairs (Banking Division), the Dearness Relief payable to surviving pre 1.1.1986 retirees of banks for the period Aug 2024 to Jan 2025 on ex-gratia as as below
| Retirees / Family Pensioners | Amt of Exgratia per month | Rate of DR in % | Amount of DR per month in Rs | Total Exgratia amount including DR per month in Rs |
|---|---|---|---|---|
| Pre 01.01.86 Retirees | 350 | 1443.18 | 5051.13 | 5401.13 |
| Surviving Spouses of Pre 01.01.86 Retirees | 175 | 1443.18 | 2525.57 | 2700.57 |
This change impacts the financial benefits received by employees, emphasizing the importance of understanding these adjustments for effective financial management. The increase decrease in Bank Dearness Relief for Pensioners suggests a move towards a possibly more balanced or reformed system to manage allowances in response to inflation.
Conversely, periods with minimal changes in CPI result in more moderate adjustments in Bankers DA by understanding the trends as said as expected DA for Bankers, which is crucial for financial planning and salary negotiations for bank employees.