Dearness Relief, DR hike of Bank Pensioners from Aug 2022 to Jan 2023

Based on the AICPIN of April, May, June 2022, Dearness Relief (DR) hike from August 2022 to January 2023 has been calculated here. Also, the official circular and exact hike of DR has been declared by IBA on 1st August 2022, for all types of bank pensioners.

Major Contents in the Post: (Jump to the Section)

  1. DR payable to Bank Pensioners for period Aug 2022 to Jan 2023
  2. Slab Calculation or formula of DR payable to Bank Pensioners
  3. DR for Bank Pensioners retired on or after 01.11.2017
  4. DR for Bank Pensioners retired between 01.11.2012 to 31.10.2017
  5. DR for Bank Pensioners retired between 01.11.2007 to 31.10.2012
  6. DR for Bank Pensioners retired between 01.11.2002 to 31.10.2007
  7. DR for Bank Pensioners retired between 01.04.1998 to 31.10.2002
  8. DR for Bank Pensioners retired between 01.11.1992 / 01.07.1993 to 31.03.1998
  9. DR for Bank Pensioners retired between 01.01.1986 to 31.10.1992 / 30.06.1993
  10. DR for Bank Pensioners, who has survived pre-01.01.1986 retirees of banks

DR hike of Bank Pensioners for duration from August 2022 to January 2023:

DR slab and rate of Dearness Relief are shown below for all kinds of retirement date range, for the period from August 2022 to January 2023.

DR from August 2022 to January 2023 for all Bank pensioners, retired between 01.11.2002 to 01.11.2017
DR from August 2022 to January 2023 for all Bank pensioners, retired between 01.11.2002 to 01.11.2017
DR from August 2022 to January 2023 for all Bank pensioners, retired between 01.01.1986 to 31.10.2002
DR from August 2022 to January 2023 for all Bank pensioners, retired between 01.01.1986 to 31.10.2002

Bank pensioners’ DR rate hike payable from Aug’22 to Jan’23 by IBA:

  1. DR rate for bank pensioners will increase to 36.82%, hike of 3.85%, who retired after 01.11.2017.
  2. DR rate for bank pensioners will increase to 100.40%, hike of 5.50%, who retired between 01.11.2012 to 31.12.2017.
  3. DR rate for bank pensioners will increase to 210.75%, hike of 8.25%, who retired between 01.11.2007 to 31.12.2012.
  4. DR rate for bank pensioners will increase to 277.56%, hike of 9.90%, who retired between 01.11.2002 to 31.12.2007.
  5. DR rate for bank pensioners will be hiked by 13.20/11.00/6.60/3.30% as per their basic scale, who retired between 01.11.1998 to 31.12.2002.
  6. DR rate for bank pensioners will be hiked by 19.25/15.95/9.35/4.95% as per their basic scale, who retired between 01.11.1992 / 01.07.1993 to 31.03.1998.
  7. DR rate for bank pensioners will be hiked by 36.85/30.25/18.15/9.35% as per their basic scale, who retired between 01.01.1986 to 31.10.1992 / 30.06.1993.

Dearness Relief, DR of Bank Pensioners for period Aug 2022 to Jan 2023:

The Rate of Dearness Relief (DR) on pension has been declared 36.% for Bank Pensioners, who retired on or after 01.11.2017. This increase in Dearness Relief (DR) are payable to pensioners of IBA’s member banks under regulation 37 of Bank Employees’ Pension Regulations.

IBA has also advised banks to pay on ad hoc basis the DR to the pensioners for period Aug 2022 to Jan 2023, due to pending amendments in Pension Regulations.

DR hike for Bank Pensioners from Aug 2022 to Jan 2023 for all retirees circular by IBA
DR hike for Bank Pensioners from Aug 2022 to Jan 2023 for all retirees circular by IBA

IBA order regarding DR of Bank Pensioners for period Aug 2022 to Jan 2023 : (DR Official order – IBA website)

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2017, Part – VII:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-6352)/4 = 526,
  • DR Rate per slab = 0.07 % of Slab = 526 x 0.07 % = 36.82%
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2022 to Jan 202336.82% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2017

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2012 and up to 31.10.2017, Part – VI:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-4440)/4 = 1004,
  • DR Rate per slab = 0.1 % of Slab = 1004 x 0.1 % = 100.40%
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2022 to Jan 2023100.40% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2012 and up to 31.10.2017

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2007 and up to 31.10.2012, Part – V:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-2836)/4 = 1405,
  • DR Rate per slab = 0.15 % of Slab = 1405 x 0.15 % = 210.75%
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2022 to Jan 2023210.75% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2007 and up to 31.10.2012

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.2002 and up to 31.10.2007, Part – IV:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-2288)/4 = 1542,
  • DR Rate per slab = 0.18 % of Slab = 1542 x 0.18 % = 277.56%
Dearness Relief (DR) for period Aug 2022 to Jan 2023277.56% of Basic Pension
DR for Bank Pensioners, who retired on or after 01.11.2002 and up to 31.10.2007

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.04.1998 and up to 31.10.2002, Part – III:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-1685)/4 = 1693,
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1693 x 0.24 % = 406.32%
    2. 0.20 % of Slab = 1693 x 0.20 % = 338.60%
    3. 0.12 % of Slab = 1693 x 0.12 % = 203.16%
    4. 0.06 % of Slab = 1693 x 0.06 % = 101.58%
Basic PensionDearness Relief (DR) for period Aug 2022 to Jan 2023
Up to ₹ 3,550406.32%
₹ 3,551 to ₹ 5,650₹ 14424.36 + 338.60% (of basic pension in excess of ₹ 3,550)
₹ 5,651 to ₹ 6,010₹ 21534.96 + 203.16% (of basic pension in excess of ₹ 5,650)
Above ₹ 6,010₹ 22266.33 + 101.58% (of basic pension in excess of ₹ 6,010)
DR for Bank Pensioners, who retired on or after 01.04.1998 and up to 31.10.2002

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.11.1992 / 01.07.1993 and up to 31.03.1998, Part – II:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-1148) / 4 = 1827,
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1827 x 0.35 % = 639.45%
    2. 0.20 % of Slab = 1827 x 0.29 % = 529.83%
    3. 0.12 % of Slab = 1827 x 0.17 % = 310.59%
    4. 0.06 % of Slab = 1827 x 0.09 % = 164.43%
Basic PensionDearness Relief (DR) for period Aug 2022 to Jan 2023
Up to ₹ 2,400639.45%
₹ 2,401 to ₹ 3,850 ₹ 15346.80 + 529.83% (of basic pension in excess of ₹ 2,400)
₹ 3,850 to ₹ 4,100₹ 23029.33 + 310.59% (of basic pension in excess of ₹ 3,850)
Above ₹ 4,100₹ 23805.80 + 164.43% (of basic pension in excess of ₹ 4,100)
DR for Bank Pensioners, who retired on or after 01.11.1992 / 01.07.1993 and up to 31.03.1988

Dearness Relief (DR) for Bank Pensioners, who retired on or after 01.01.1986 and up to 31.10.1992 / 30.06.1993, Part-I:

DR for Bank Pensioners during period Aug 2022 to Jan 2023:

  • Average Quarterly AICPIN Index : 8456,
  • Slabs = (8456-600)/4 = 1964,
  • DR Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1964 x 0.67 % = 1315.88%
    2. 0.20 % of Slab = 1964 x 0.55 % = 1080.20%
    3. 0.12 % of Slab = 1964 x 0.33 % = 648.12%
    4. 0.06 % of Slab = 1964 x 0.17 % = 333.88%
Basic PensionDearness Relief (DR) for period Aug 2022 to Jan 2023
Up to ₹ 1,2501315.88%
₹ 1,251 to ₹ 2,000 ₹ 16448.50 + 1080.20% (of basic pension in excess of ₹ 1,250)
₹ 2,000 to ₹ 2,130₹ 24550.00 + 648.12% (of basic pension in excess of ₹ 2,000)
Above ₹ 2,130₹ 25392.55 + 333.88% (of basic pension in excess of ₹ 2,130)
DR for Bank Pensioners, who retired on or after 01.01.1986 and up to 31.10.1992 / 30.06.1993

Also Read: Revised interest rates of Post office and small savings schemes

Dearness Relief (DR) for Bank Pensioner, who has survived pre-01.01.1986 retirees of banks and surviving spouses of pre-01.01.1986 retirees:

DR order by IBA for Bank pensioners (pre-01.01.86 Retirees)
DR order by IBA for Bank pensioners (pre-01.01.86 Retirees)

DR payable for period Aug 2022 to Jan 2023 are given below : Average Index : 8456

  1. Surviving pre-01.01.1986 retirees of banks
  2. Surviving spouses of pre-01.01.1986 retirees who are in receipt of Ex-gratia.
PensionersAmount of Ex-gratia per month (A)Rate of Dearness ReliefAmount of Dearness Relief per month (B)Total Ex-gratia amount including Dearness Relief per month (A+B)
pre-01.01.1986 retirees₹ 3501315.88%₹ 4606₹ 4956
Surviving spouses of pre-01.01.1986 retirees₹ 1751315.88%₹ 2303₹ 2478
DR for surviving pre-01.01.1986 retirees of banks and surviving spouses of pre-01.01.1986 retirees

DR Official order surviving pre-01.01.1986 – IBA website

DR hike history of bank pensioners:

Period of DR hikeRetired after 01.11.2017 Retired between 01.11.12 to 31.10.17Retired between 01.11.07 to 31.10.12Retired between 01.11.02 to 31.10.07
Aug’22 to Jan’23 36.82 (+3.85%) 100.4 (+5.5%) 210.75 (+8.25%) 277.56 (+9.9%)
Feb’22 to Jul’22 32.97(+5.18%) 94.90(+7.40%) 202.50(+11.10%) 267.66(+13.32%)
Aug’21 to Jan’22 27.79(+1.61%) 87.50(+2.30%) 191.40 (+3.45%) 254.34 (+4.14%)
Feb’21 to Jul’2126.18(+5.39%)85.20 (+ 7.70 %)187.95 (+ 11.55%)250.20 (+ 13.86%)
Aug’20 to Jan’21 20.7977.5176.4236.34
DR hike history table of bank pensioners

How to calculate DR of bank pensioners? What is the formula of DR calculation of bank pensioners? Example:

Slab and rate calculation for DR of bank pensioners from Aug 2022 to Jan 2023:

  1. Jun 2022 AICPIN – 129.2 x 2.88 x 4.63 x 4.93 = 8493.43
  2. May 2022 AICPIN – 129 x 2.88 x 4.63 x 4.93 = 8480.28
  3. Apr 2022 AICPIN – 127.7 x 2.88 x 4.63 x 4.93 = 8394.82

For those pensioners, who retired after 01.11.2017, 6352 points of DA was merged with the ‘pay’ and DA rate was fixed at 0.07 % per DA slab. So, the calculation of Bank DR is:

  • Average of the quarter (Apr, May, Jun) = 8456
  • Number of DA slabs = (8456 – 6352) / 4 = 526 slabs
  • DA, DR rate effective from 01.08.2022 = 36.82% (0.07 % of 526), formula applicable for those pensioners, who retired on or after 01.11.2017.
DA, DR hike of all states and UTs of IndiaDA hike of Central Govt. Employees of 7th cpc, 6th cpc, 5th cpc
DA, DR hike of Indian Army, Navy and Air ForceDR hike of Central Govt. Pensioners and Family Pensioners
DA hike of Bank EmployeesDR hike of Bank Pensioners or Bank Retirees of all types
IDA hike for CPSE or PSU employees of 3rd prc, 2nd prc, 1997 pay scaleAICPI-IW of current month – To calculate DA, DR

Disclaimer: Kindly refer dpe.gov.in for any inconsistencies in rules, understandings and clarification.

9 thoughts on “Dearness Relief, DR hike of Bank Pensioners from Aug 2022 to Jan 2023

  1. DA oncrease for Bank pensioners will how much for month in terms of rupees and when it will be credited? before 31stcDecember?

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