In pursuance of the decision of the Cabinet on July 14, 2021, the Department of Pension & Pensioners Welfare has issued orders for increasing the dearness relief to pensioners and family pensioners of the central government (including pensioners/ family pensioners of the armed forces, all India services and railways) with effect from July 1, 2021 to 28 per cent of the basic pension/family pension (including additional pension/family pension), representing an increase of 11 per cent over the existing rate of 17 per cent.
Given the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of dearness relief to pensioners, which were due from January 1, 2020, January 1, 2021, and July 1, 2021.
Now, the government has issued orders to increase the dearness relief to pensioners/family pensioners with effect from July 1, 2021, to 28 per cent of the basic pension/family pension. The increase subsumes the three additional instalments arising on the dates mentioned above. The rate of dearness relief for the period from January 1, 2020, to June 30, 2021, shall remain at 17 per cent of basic pension/family pension.