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Friday, 15 April 2016

All Banks asked to calculate 6% Dearness Relief for central government pensioners

All Banks asked to calculate 6% Dearness Relief for central government pensioners

All banks have been asked to calculate revised amount of pension following the recent six per cent hike in Dearness Relief (DR), the Centre has said.

The President is pleased to decide that the DR payable to central government pensioners and family pensioners shall be enhanced from the existing rate of 119 per cent to 125 per cent with effect from January 1, 2016,” an order issued by Ministry of Personnel, Public grievances and Pensions said.

“It will be the responsibility of the pension disbursing authorities, including the nationalised banks, etc. to calculate the quantum of DR payable in each individual case,” the order F.No.42/06/2016-P&PW(G) issued on Monday said.

There are about 58 lakh pensioners.

The Union Cabinet had on March 23, approved release of an additional instalment of Dearness Allowance (DA) to central government employees and DR to pensioners from this year onwards to compensate for price rise.

The combined impact on the exchequer on account of both DA and DR would be of Rs 6,796.50 crore per annum and Rs 7,929.24 crore respectively, in the financial year 2016-17 (for a period of 14 months from January, 2016 to February, 2017).

The offices of Accountant General and authorised pension disbursing banks are requested to arrange payment of relief to pensioners etc. on the basis of this instruction without waiting for any further orders from the Comptroller and Auditor General of India and the Reserve Bank of India, the order said.

PTI
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Rajasthan government announced six per cent hike in the Dearness Allowance (DA) of its employees.

Rajasthan government announced six per cent hike in the Dearness Allowance (DA) of its employees.

Dearness Relief (DR) for the pensioners has also been increased by six per cent. The DA hike would be effective from January 1, 2016, a release said.

The prevalent DA of the state government employees was 119 per cent and has been increased to 125 per cent of the basic pay.

Nearly eight lakh employees and 3.5 lakh pensioners would be benefited by these hikes, it said.
DA hike would also be applicable for employees of the Panchayat Samitis and Zila Parishads, among others.
The increased DA would be paid in cash from April 1.

The arrears on account of the increased DA from January 1 to March 31 would be credited in the GPF accounts of the employees appointed before January 1, 2004 while the arrears of the hiked DA for the three months would be paid in cash to the employees appointed after January 1, 2004.

The increased Dearness Relief to the pensioners and family pensioners would also be paid in cash.
The burden on the state exchequer would be Rs 1,120 crore in the current financial year.

PTI
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Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

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