7th Pay Commission: Good news for retired employees, the ministry has issued this order

On July 14, the Union Cabinet approved the increase of the Dear Relief (DR) for retired employees. Now, following this decision, the Pensions and Pensioners Welfare Department has issued an order. About 63 lakh pensioners are expected to benefit from it.

What retired employees benefit from: According to the data provided by the department, the government has been mandated to increase in-kind relief offered to central government pensioners and family pensioners (including Armed Forces pensioners / family pensioners, All India Services and Railways). Pensioners will now get a dear compensation at the rate of 28 per cent. Previously it was available at a rate of 17 per cent. This rule is effective from 1 July 2021.

The ban included three additional episodes: In fact, due to the Kovid-19 pandemic, three additional episodes of pensioners’ intimate compensation were terminated. The ban lasted from January 2020 to June 2021. The government has increased dear compensation by 11 per cent by adding additional installments to this withholding. In addition, the government has reduced the dearness allowance, i.e. the DA, to 28 percent. About 48 lakh central employees will benefit from the increase in DA.

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Increasing DA Benefits: The biggest benefit of the DA increase for central employees will be made available in the HRA. According to 7th Pay Commission rules, if the allowance is higher than 25 per cent, then the house rent allowance (HRA) will also increase. My favorite allowance is now 28 per cent, so obviously the HRA will increase. Furthermore, the PF contribution rate increases.

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