The department has said that many questions had come to it. In which it was asked whether Dearness Allowance is being given on basic pension or is it reduced after commutation on pension. On this, the department has clearly said that dearness relief is given on the basic pension before commutation or on the basic pension before commutation based on the recommendations of the Pay Commission.
Dearness Relief is not being paid on pension after deduction of commuted pension. Overall, the department has removed the dilemma of pensioners. Dearness relief to retired employees is paid on the basis of original basic pension. Dearness relief is not being given on the basis of reduced pension after commutation.
Increasing dearness relief is given to retired employees under the Pension Rules 2021. This money is given to the retired employee or his beneficiary receiving the pension. The government announces its increase every half yearly. In such a situation, at which time the DA increases to the employees. At the same time their DR is also announced.
Under the 7th Pay Commission, the central government has recently increased the dearness allowance of its employees to 38 percent. Whereas in the same proportion, dearness relief to pensioners has increased to 38 percent. The dearness relief for pensionable employees will be calculated on the basis of basic pension before commutation. This dearness relief of 38 per cent is applicable from July 1, 2022.
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