7th Pay Commission News: Out of the basic pension of Rs 50,000, Rs 17,000 comes as DR for pensioners (DR Calculator)
7th Pay Commission Latest News Today 2022 (DR Calculator): Like the dearness allowance for central government employees, central government pensioners receive dearness relief (DR) to compensate for the erosion of the monthly value pension due to inflation.
The government is revising the DA and DR rates for employees and retirees together. Normally, DA and DR rates are reported twice a year in March and September. With September, employees and retirees eagerly await the announcement of the DA/DR hike by the central government.
Meanwhile, a utility on the official government pensioner portal allows pensioners to calculate DR and gross pension/family pension.
Read also: Latest DA/DR rate
Here is an example calculation:
Suppose that the basic pension/family pension before conversion is Rs 50,000 and that the amount of the pension incurred is nil. In this case, the calculator shows that your DR amount at the rate of 34% will be Rs 17,000 while the gross pension/family pension will be Rs 67,000.
In the same example, if the converted pension amount is Rs 20,000, the DR amount will be Rs 17,000 and the gross/family pension amount will be Rs 47,000.
Note: The DR Calculator only gives indicative figures for understanding. The actual DR and pension amount may be different. You can access the DR Calculator at https://pensionersportal.gov.in/PensionCalculators/Calculator_DR/Calculator_DR.aspx
How DR arrears are paid
As mentioned above, the DR rate is normally declared twice a year in March and September. According to the pensioners’ portal, the DR on pension for the months of January and February is calculated according to the DR rates available for the month of December of the previous years.
The DR for the months of July and August is calculated on the basis of the DR rates available for the month of June.
The pensioner portal indicates that the DR arrears for the months of June and February and July and August are disbursed by the authorities normally in the month of April and October respectively.
Read also: How the DA equivalent for retirees has jumped 1600% in 6 years!
Central government employees have the option of converting part of their pension, not exceeding 40%, into a lump sum payment. To do this, they do not need any medical examination if the option is exercised within one year of retirement.
The DR rate for central government retirees is decided according to the formula recommended by the 7th Wages Commission.