Dearness Relief, DR hike of Bank Pensioners from Feb 2021 to July 2021

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The Dearness Relief, DR payable to Bank Pensioners for the period February 2021 to July 2021 has been declared below after release of December AICPIN-IW by IBA on 01.02.2021.

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

  1. DA, DR, Slab of Bank Pensioners for duration Feb 21 to Jul 21 (IBA official order)
  2. DA, DR payable to Bank Pensioners for period Aug 2020 to Jan 2021 (IBA official order)
  3. Slab Calculation or formula of DR payable to Bank Pensioners
  4. DR for Bank Pensioners retired on or after 01.11.2017
  5. DR for Bank Pensioners retired between 01.11.2012 to 31.10.2017
  6. DR for Bank Pensioners retired between 01.11.2007 to 31.10.2012
  7. DR for Bank Pensioners retired between 01.11.2002 to 31.10.2007
  8. DR for Bank Pensioners retired between 01.04.1998 to 31.10.2002
  9. DR for Bank Pensioners retired between 01.11.1992 / 01.07.1993 to 31.03.1998
  10. DR for Bank Pensioners retired between 01.01.1986 to 31.10.1992 / 30.06.1993
  11. DR for Bank Pensioners, who has survived pre-01.01.1986 retirees of banks

Calculated slab and rate of DR of Bank Pensioners for duration Feb 21 to Jul 21:

Calculated slab and rate of Dearness Relief are shown below for all kinds of retirement date range, for the period from February 2021 to July 2021.

DR from Feb to July 2021 for all Bank pensioners
DR hike for bank pensioners from Feb 21 to July 21, for all types of Retired employees

Bank pensioners DA, DR rate hike payable from Feb 21 to July 21 :

  1. DA, DR rate for bank pensioners will increase to 26.18 %, hike of 5.39 %, who retired after 01.11.2017.
  2. DA, DR rate for bank pensioners will increase to 85.20 %, hike of 7.70 %, who retired between 01.11.2012 to 31.12.2017.
  3. DA, DR rate for bank pensioners will increase to 187.95 %, hike of 11.55 %, who retired between 01.11.2007 to 31.12.2012.
  4. DA, DR rate for bank pensioners will increase to 250.20 %, hike of 13.86 %, who retired between 01.11.2002 to 31.12.2007.
  5. DA, DR rate for bank pensioners will be hiked by 18.48/15.40/9.24/4.62 % as per their basic scale, who retired between 01.11.1998 to 31.12.2002.
  6. DA, DR rate for bank pensioners will be hiked by 26.95/22.33/13.09/6.93 % as per their basic scale, who retired between 01.11.1992 / 01.07.1993 to 31.03.1998.
  7. DA, DR rate for bank pensioners will be hiked by 51.59/42.35/25.41/13.09 % as per their basic scale, who retired between 01.01.1986 to 31.10.1992 / 30.06.1993.

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Dearness Relief, DR of Bank Pensioners for period February 2021 to July 2021

Government of India had released average AICPIN for October 2020, November 2020, December 2020. With these ‘All India Average Consumer Price Index Number for Industrial Workers’ (AICPIN-IW), the Dearness Relief for Bank Pensioners has been declared for the period from February 2021 to July 2021 by Indian Banks Association (IBA).

The Rate of Dearness Relief (DR) on pension has been declared 26.18 % 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 for the months of February 2021 to July 2021 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 February 2021 to July 2021, due to pending amendments in Pension Regulations.

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DR from Feb 2021 to July 2021 for all Bank pensioners
DR from Feb 2021 to July 2021 for all Bank pensioners

IBA order regarding DR of Bank Pensioners for period February 2021 to July 2021: (DR Official order – IBA website)

DR order by IBA of Bank Pensioners for period February 2021 to July 2021 pdfDownload

AICPIN-IW required for calculation of slabs, DR for period February 2021 to July 2021 :

  1. 30.01.2021 – December 2020 AICPIN – 345 (118.8 x 2.88 = 342)
  2. 31.12.2020 – November 2020 AICPIN – 345 (119.9 x 2.88 = 345)
  3. 27.10.2020 – October 2020 AICPIN (Base year – 2016) – 344 (119.5 x 2.88 = 344)

After declaration of AICPIN-IW of October 2020, November 2020 and December 2020, the slabs are calculated and DA rates are found. Accordingly Dearness Relief payable are calculated for all types of bank pensioners for period February 2021 to July 2021.

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

Slab and rate calculation for DR of bank pensioners from February 2021 to July 2021:

  1. Dec 2020 AICPIN – 118.8 x 2.88 x 4.63 x 4.93 = 7809.74
  2. Nov 2020 AICPIN – 119.9 x 2.88 x 4.63 x 4.93 = 7882.06
  3. Oct 2020 AICPIN – 119.5 x 2.88 x 4.63 x 4.93 = 7855.76

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 (Oct, Nov, Dec) = 7849.19 [(7855.76+7882.06+7809.74) / 3 = 7849]
  • Number of DA slabs = 7849- 6352= 3100 / 4 = 374 slabs
  • DA rate effective from 01.01.2021 = 26.18 % (0.07 % of 374), formula applicable for those pensioners, who retired on or after 01.11.2017.

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

DR for Bank Pensioners during period February 2021 to July 2021:

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7549-6352)/4 = 374,
  • DR Rate per slab = 0.07 % of Slab = 374 x 0.07 % = 26.18 %
Dearness Relief (DR) payable to Bank Pensioners for period February 2021 to July 202126.18 % of Basic Pension
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021:

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-4440)/4 = 852,
  • DA Rate per slab = 0.1 % of Slab = 852x 0.1 % = 85.2%
Dearness Relief (DR) payable to Bank Pensioners for period February 2021 to July 202185.2 % of Basic Pension
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021:

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-2836)/4 = 1253,
  • DA Rate per slab = 0.15 % of Slab = 1253 x 0.15 % = 187.95 %
Dearness Relief (DR) payable to Bank Pensioners for period February 2021 to July 2021187.95 % of Basic Pension
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021:

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-2288)/4 = 1390,
  • DA Rate per slab = 0.18 % of Slab = 1390 x 0.18 % = 250.20%
Dearness Relief (DR) for period February 2021 to July 2021250.20 % of Basic Pension
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021 :

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-1685)/4 = 1541,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1541 x 0.24 % = 369.84%
    2. 0.20 % of Slab = 1541 x 0.20 % = 308.20%
    3. 0.12 % of Slab = 1541 x 0.12 % = 184.92%
    4. 0.06 % of Slab = 1541 x 0.06 % = 92.46%
Basic PensionDearness Relief (DR) for period February 2021 to July 2021
Up to ₹ 3,500369.84 %
₹ 3,501 to ₹ 5,650₹ 13129.32 + 308.20 % (of basic pension in excess of ₹ 3,500)
₹ 5,651 to ₹ 6,010₹ 19601.52 + 184.92 % (of basic pension in excess of ₹ 5,650)
Above ₹ 6,010₹ 20267.23 + 92.46% (of basic pension in excess of ₹ 6,010)
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021 :

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-1148)/4 = 1675,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1675 x 0.35 % = 586.25%
    2. 0.20 % of Slab = 1675 x 0.29 % = 485.75%
    3. 0.12 % of Slab = 1675 x 0.17 % = 284.75%
    4. 0.06 % of Slab = 1675 x 0.09 % = 150.75%
Basic PensionDearness Relief (DR) for period February 2021 to July 2021
Up to ₹ 2,400586.25 %
₹ 2,401 to ₹ 3,850 ₹ 14070.00 + 485.75 % (of basic pension in excess of ₹ 2,400)
₹ 3,850 to ₹ 4,100₹ 21113.37 + 284.75 % (of basic pension in excess of ₹ 3,850)
Above ₹ 4,100₹ 21825.24 + 150.75 % (of basic pension in excess of ₹ 4,100)
DR for Bank Pensioners during period February 2021 to July 2021, 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 February 2021 to July 2021 :

  • Average Quarterly AICPIN Index : 7849,
  • Slabs = (7849-600)/4 = 1812,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1812 x 0.67 % = 1214.04%
    2. 0.20 % of Slab = 1812 x 0.55 % = 996.60%
    3. 0.12 % of Slab = 1812 x 0.33 % = 597.96%
    4. 0.06 % of Slab = 1812 x 0.17 % = 308.04%
Basic PensionDearness Relief (DR) for period February 2021 to July 2021
Up to ₹ 1,2501214.04 %
₹ 1,251 to ₹ 2,000 ₹ 15175.50 + 996.60 % (of basic pension in excess of ₹ 1,250)
₹ 2,000 to ₹ 2,130₹ 22650.00 + 597.96 % (of basic pension in excess of ₹ 2,000)
Above ₹ 2,130₹ 23427.34 + 308.04 % (of basic pension in excess of ₹ 2,130)
DR for Bank Pensioners during period February 2021 to July 2021, who retired on or after 01.01.1986 and up to 31.10.1992 / 30.06.1993

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) from February 2021 to July 2021
DR order by IBA for Bank pensioners (pre-01.01.86 Retirees) from February 2021 to July 2021

DR payable for period February 2021 to July 2021 are given below : Average Index : 7849

  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₹ 3501214.04 %₹ 4249₹ 4599
Surviving spouses of pre-01.01.1986 retirees₹ 1751214.04 %₹ 2125₹ 2300
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-order-by-IBA-for-Bank-pensioners-pre-01.01.86-Retirees-from-Feb-21-to-Jul-21Download

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