Dearness Relief (DR) is a component of pension or salary provided to employees, particularly in India, to offset the impact of inflation. It’s commonly given to government employees, pensioners, and retirees.
DR aims to help recipients maintain their purchasing power despite rising living costs. As inflation increases, the cost of living goes up, so DR helps adjust salaries or pensions to reflect these changes.
Dearness Relief for Pensioners is typically revised twice a year, i.e. once in January and once in July based on the Consumer Price Index (CPI) or other relevant inflation indices.
For Government working employees the current CDA rates, and DR for pensioners is automatically adjusted and incorporated into their salaries or pensions, whereas for PSUs the DR rates may adjusted as per the calculation of PSU IDA rates It ensures that their income keeps pace with inflationary trends.
Overall, Dearness Relief is a crucial mechanism for protecting the financial well-being of those on fixed incomes from the eroding effects of inflation.
DR Calculator
The amount of DR is usually calculated as a percentage of the basic pension or salary. This DR percentage is determined by the Central Government of India or relevant authority and is periodically revised based on changes in inflation rates and cost of living indices.
The calculator simplifies the process by allowing users to input their pension details and automatically generates the applicable Dearness Relief amount based on current government guidelines. So, please the below URL for DR calculator
>> pensionersportal.gov.in/PensionCalculators
By utilizing this tool, pensioners can ensure that they are receiving the correct amount of relief and manage their finances more effectively. The portal is a part of the Indian government’s initiative to enhance transparency and efficiency in pension management.
Dearness Relief Rates for Pensioner
As per 7th CPC, to state that the President is pleased to decide that the Dearness Relief admissible to Central Government Pensioners / Family Pensioners to get the DR Rates at the below mentioned % in the table.
| From | To | % of Dearness Relief |
|---|---|---|
| 1st January 2024 | 31st July 2024 | 50 |
| 1st July 2023 | 31st December 2023 | 46 |
| 1st January 2023 | 31st July 2023 | 42 |
| 1st July 2022 | 31st December 2022 | 38 |
| 1st January 2022 | 31st July 2022 | 34 |
| 1st July 2021 | 31st December 2021 | 31 |
| 1st January 2021 | 31st July 2021 | Freeze |
| 1st July 2020 | 31st December 2020 | Freeze |
| 1st January 2020 | 31st July 2020 | Freeze |
| 1st July 2019 | 31st December 2019 | 17 |
| 1st January 2019 | 31st July 2019 | 12 |
| 1st July 2018 | 31st December 2018 | 9 |
| 1st January 2018 | 31st July 2018 | 7 |
| 1st July 2017 | 31st December 2017 | 5 |
| 1st January 2017 | 31st July 2017 | 4 |
| 1st July 2016 | 31st December 2016 | 2 |
Who are Applicable for Dearness Relief
The rates of Dearness Relief will be applicable as per the announcements from Government of India to the following categories:
- Civilian Central Government Pensioners/ Family Pensioners including Central Govt.
absorbee pensioners in PSU / Autonomous Bodies in respect of whom orders have
been issued vide this Department’s OM No. 4/34/2002-P&PW(D) Vol.II dated
23.06.2017 for restoration of full pension after expiry of commutation period of 15
years. - The Armed Forces Pensioners/Family Pensioners and Civilian Pensioners/Family
Pensioners paid out of the Defence Service Estimates. - All India Service Pensioners/Family Pensioners.
- Railway Pensioners/Family Pensioners.
- Pensioners who are in receipt of provisional pension.
- The Burma Civilian Pensioners/Family Pensioners and Pensioners / families of
displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders
have been issued vide this Department’s OM No. 23/3/2008-P&PW(B) dated
11.09.2017.
Where the PSB (Public Sector Banks) and PSU (Central Public Sector Enterprise) DR rates will decide as per their pay revisions happend from time to time.