DR hike for pensioners from 1st July 2021, for central govt. pensioners and family pensioners

DA calculation for Gratuity and Leave encashment of retired central govt. employees between 01.01.20 to 30.06.21:

Since the DA / DR was freezed for the period from 1st Jan’20 to 30th Jun’21 for central govt. employees. So, there was a genuine concern for the retired employees within that period. As DA declared was only 17%, while it was increasing by calculation. So, the Govt. has relaxed rules for them.

Employees retiring during periodDA for calculation of Gratuity and Leave encashment purpose
from 01.01.2020 to 30.06.202021 % of basic pay
from 01.07.2020 to 31.12.202024 % of basic pay
from 01.01.2021 to 30.06.202028 % of basic pay
DA calculation for Gratuity and Leave encashment of retired central govt. employees between 01.01.20 to 30.06.21

DA for central government pensioners has been increased from 17 % to 28 % with effect from 1st July 2021. The DoPPW has issued the order dated 22th July 2021.

DA hike order for central govt. employees and pensioners from 1st July 2021 by DoPPW
DA hike order for central govt. employees and pensioners from 1st July 2021

Calculated DR hike for Central Govt. pensioners of 7th cpc up to June 2021:

Below is shown the Calculated DR hike calculation for Central Government pensioners and family pensioners of 7th cpc up to June 2021.

Calculated DA hike for Central Govt. employees for 7th CPC up to June 2021
Calculated DA hike for Central Govt. pensioners for 7th CPC up to June 2021

Dearness Relief (DR) hike for Central Government pensioners / family pensioner for 7th CPC pay scale with DPPW letter:

Department of Pension & Pensioners’ Welfare under Ministry of Personnel, Public Grievances & Pensions announces the Dearness Relief two times in a year.

These rates of DR hike will be applicable to the following pensioners:

  1. Civilian Central Government Pensioners / Family Pensioners including Central Govt. absorbee pensioners in PSU / Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No. 4/34/2002-P&PW(D) Vol II dated 23.06.2017 for restoration of full pension after expiry of commutation period of IS years.
  2. The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates.
  3. All India Service Pensioners.
  4. Railway Pensioners / family pensioners.
  5. Pensioners who are in receipt of provisional pension.
  6. The Burma Civilian pensioners / family pensioners and pensioners / families of displaced Government Pensioners from Burma / Pakistan, in respect of whom orders have been issued vide this Department’s
  7. OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

Past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale:

Below is the list of past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale. The official order has been attached under ‘letter by DPPW’.

Period of DR hikeDR applicable (%)DR hike (%)Letter by DPPW
01-07-2021 to 31-12-202128%11 % DPPW Notif., 22.07.21
01-01-2021 to 30-06-202117 %0 %DR Freezed till 30.06.21
01-07-2020 to 31-12-202017 %0 %DR Freezed till 30.06.21
01-01-2020 to 30-06-202017 %0 %DR Freezed till 30.06.21
01-07-2019 to 31-12-201917 %5 %DPPW Notif., 21.10.19
01-01-2019 to 30-06-201912 %3 %DPPW Notif., 06.03.19
01-07-2018 to 31-12-20189 %2 %DPPW Notif., 18.09.18
01-01-2018 to 30-06-20187 %2 %DPPW Notif., 22.03.18
01-07-2017 to 31-12-20175 %1 %DPPW Notif., 28.09.17
01-01-2017 to 30-06-20174 %2 %DPPW Notif., 07.04.17
History of Dearness relief DR hike for central government pensioners of 7th CPC Pay scale

Also Read: Excel-income-tax-calculator for comparison between Old and New Tax structure.

Disclaimer: Kindly check for any clarification from official website.

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