Dearness Relief, DR hike of Bank Pensioners from Aug 2021 to Jan 2022

The AICPIN – IW (All-India Consumer Price Index Number – Industrial Workers) for June 2021 has been released on 30.07.2021 (Friday), the last working day of July month, by Labour Bureau, under Ministry of Labour and Employment. Based on the AICPIN of last 3 months, DR have been calculated for all types of bank pensioners.

IBA has also declared dated 2nd Aug 2021 the Dearness Relief, DR payable to Bank Pensioners for the period August 2021 to January 2022.

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

  1. DA, DR payable to Bank Pensioners for period Aug 2021 to Jan 2022
  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

Slab and rate of DR of Bank Pensioners for duration August 2021 to January 2022:

DR slab and rate of Dearness Relief are shown below for all kinds of retirement date range, for the period from August 2021 to January 2022.

DR from Aug 2021 to Jan 2022 for all Bank pensioners
DR from Aug 2021 to Jan 2022 for all Bank pensioners

Bank pensioners DA, DR rate hike payable from Aug’21 to Jan’22 by IBA :

  1. DA, DR rate for bank pensioners will increase to 27.79%, hike of 1.61 %, who retired after 01.11.2017.
  2. DA, DR rate for bank pensioners will increase to 87.50 %, hike of 2.30 %, who retired between 01.11.2012 to 31.12.2017.
  3. DA, DR rate for bank pensioners will increase to 191.40 %, hike of 3.45 %, who retired between 01.11.2007 to 31.12.2012.
  4. DA, DR rate for bank pensioners will increase to 254.34%, hike of 4.14 %, who retired between 01.11.2002 to 31.12.2007.
  5. DA, DR rate for bank pensioners will be hiked by 5.52/4.60/2.76/1.38% 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 8.05/6.67/3.91/2.07% 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 15.41/12.65/7.59/3.91% 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 2021 to Jan 2022:

The Rate of Dearness Relief (DR) on pension has been declared 27.79% 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 August 2021 to January 2022 , due to pending amendments in Pension Regulations.

DR from Aug 2021 to Jan 2022 for all Bank pensioners
DR from Aug 2021 to Jan 2022 for all Bank pensioners

IBA order regarding DR of Bank Pensioners for period August 2021 to January 2022 : (DR Official order – IBA website)

AICPIN-IW required for calculation of slabs, DR for period August 2021 to January 2022 :

  1. 30.07.2021 – June 2021 AICPIN – 350 (Click Here to download) (121.7x 2.88 = 350)
  2. 30.06.2021 – May 2021 AICPIN – 347 (Click Here to download) (120.6x 2.88 = 347)
  3. 31.05.2021 – April 2021 AICPIN – 346 (Click Here to download) (120.1x 2.88 = 346)

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 Aug 2021 to Jan 2022:

  1. Jun 2021 AICPIN – 121.7 x 2.88 x 4.63 x 4.93 = 8000.39
  2. May 2021 AICPIN – 120.6 x 2.88 x 4.63 x 4.93 = 7928.07
  3. Apr 2021 AICPIN – 120.1 x 2.88 x 4.63 x 4.93 = 7895.20

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) = 7941.22 [(7895.20+7928.07+8000.39) / 3 = 7941]
  • Number of DA slabs = 7941– 6352= 1589/ 4 = 397 slabs
  • DA rate effective from 01.08.2021 = 27.79 % (0.07 % of 397), formula applicable for those pensioners, who retired on or after 01.11.2017.

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

DR for Bank Pensioners during period Aug 2021 to Jan 2022:

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-6352)/4 = 397,
  • DR Rate per slab = 0.07 % of Slab = 374 x 0.07 % = 26.18 %
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2021 to Jan 2022 27.79 % of Basic Pension
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-4440)/4 = 875,
  • DA Rate per slab = 0.1 % of Slab = 875 x 0.1 % = 87.5%
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2021 to Jan 2022 87.5 % of Basic Pension
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-2836)/4 = 1276,
  • DA Rate per slab = 0.15 % of Slab = 1276 x 0.15 % = 191.40%
Dearness Relief (DR) payable to Bank Pensioners for period Aug 2021 to Jan 2022 191.40 % of Basic Pension
DR for Bank Pensioners during period Aug 2021 to Jan 2022 , 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-2288)/4 = 1413,
  • DA Rate per slab = 0.18 % of Slab = 1413x 0.18 % = 254.34%
Dearness Relief (DR) for period Aug 2021 to Jan 2022 254.34 % of Basic Pension
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-1685)/4 = 1564,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1564 x 0.24 % = 375.36%
    2. 0.20 % of Slab = 1564 x 0.20 % = 312.80%
    3. 0.12 % of Slab = 1564 x 0.12 % = 187.68%
    4. 0.06 % of Slab = 1564 x 0.06 % = 93.84%
Basic PensionDearness Relief (DR) for period Aug 2021 to Jan 2022
Up to ₹ 3,550375.36 %
₹ 3,551 to ₹ 5,650₹ 13325.28 + 312.80 % (of basic pension in excess of ₹ 3,550)
₹ 5,651 to ₹ 6,010₹ 19894.08 + 187.68 % (of basic pension in excess of ₹ 5,650)
Above ₹ 6,010₹ 20569.72 + 93.84 % (of basic pension in excess of ₹ 6,010)
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-1148)/4 = 1698,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1698 x 0.35 % = 594.30%
    2. 0.20 % of Slab = 1698 x 0.29 % = 492.42%
    3. 0.12 % of Slab = 1698 x 0.17 % = 288.66%
    4. 0.06 % of Slab = 1698 x 0.09 % = 152.82%
Basic PensionDearness Relief (DR) for period Aug 2021 to Jan 2022
Up to ₹ 2,400594.30 %
₹ 2,401 to ₹ 3,850 ₹ 14263.20 + 492.42 % (of basic pension in excess of ₹ 2,400)
₹ 3,850 to ₹ 4,100₹ 21403.29 + 288.66 % (of basic pension in excess of ₹ 3,850)
Above ₹ 4,100₹ 22124.94 + 152.82 % (of basic pension in excess of ₹ 4,100)
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 2021 to Jan 2022 :

  • Average Quarterly AICPIN Index : 7941,
  • Slabs = (7941-600)/4 = 1835,
  • DA Rate per slab (respectively in order) =
    1. 0.24 % of Slab = 1835 x 0.67 % = 1229.45%
    2. 0.20 % of Slab = 1835 x 0.55 % = 1009.25%
    3. 0.12 % of Slab = 1835 x 0.33 % = 605.55%
    4. 0.06 % of Slab = 1835 x 0.17 % = 311.95%
Basic PensionDearness Relief (DR) for period Aug 2021 to Jan 2022
Up to ₹ 1,2501229.45 %
₹ 1,251 to ₹ 2,000 ₹ 15368.12 + 1009.25 % (of basic pension in excess of ₹ 1,250)
₹ 2,000 to ₹ 2,130₹ 22937.49 + 605.55 % (of basic pension in excess of ₹ 2,000)
Above ₹ 2,130₹ 23724.70 + 311.95 % (of basic pension in excess of ₹ 2,130)
DR for Bank Pensioners during period Aug 2021 to Jan 2022, 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 Aug 2021 to Jan 2022
DR order by IBA for Bank pensioners (pre-01.01.86 Retirees) from Aug 2021 to Jan 2022

DR payable for period Aug 2021 to Jan 2022 are given below : Average Index : 7941

  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₹ 3501229.45%₹ 4303₹ 4653
Surviving spouses of pre-01.01.1986 retirees₹ 1751229.45%₹ 2152₹ 2327
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’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 of bank pensioners

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

If you liked this article, kindly share it on any platform, whatsapp, facebook, twitter, Linkedin etc. below to keep us motivated.

4 thoughts on “Dearness Relief, DR hike of Bank Pensioners from Aug 2021 to Jan 2022

Leave a Reply

%d bloggers like this: