The Dearness Relief admissible to the Contributory Provident fund (CPF) beneficiaries in receipt of basic ex-gratia payment in the 5th CPC series is being enhanced effective January 1, 2022. The enhanced rates have been publihsed by the Department of Pension & Pensioners’ Welfare OM dated May 11, 2022 in an Office Memorandum. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of Dearness Relief (DR) payable in each individual case.
The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 and 31.12.1985, and are entitled to basic ex-gratia @ Rs.3000, Rs.1000, Rs.750 & Rs.650 for Group A, B, C & D respectively w.e.f 4th June,2013 shall now be entitled to enhanced Dearness Relief from 368% of the basic ex-gratia to 381% of the basic ex-gratia w.e.f 01.01.2022.
The following categories of CPF beneficiaries shall be entitled to enhanced Dearness Relief from 360% of the basic ex-gratia to 373% of the basic ex-gratia w.e.f 01.01.2022.
The widows and eligible children of the deceased CPF beneficiary who had retired from service prior to 01.01.1986 or who had died while in service prior to 01.01.1986 and are entitled to revised ex-gratia @ Rs.645/-p.m w.e.f 04 June, 2013.
Central Government employees who had retired on CPF benefits before 18.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs.659/-, Rs.703/- and Rs.965/-.
Contributory Provident fund (CPF) benefits
Industrial employees on their retirement from service are not entitled to any pension. They are normally entitled to CPF benefits unless and until they opt for pensionary benefits.
CPF benefits means Contributory Provident fund in which a monthly contribution is made by an industrial employee and a matching contribution or such percentage of the subscriber emoluments as may be prescribed by the Government is also made by the Government into the fund of that employee.
On his retirement, the industrial employee is paid the accumulated amount of fund standing to his credit with the amount of interest accrued thereon as prescribed.
Dearness Relief (DR)
DR is normally declared twice a year during the months of March and September. So in the months of January and February, DR on Pension/Family Pension will be calculated according to the DR Rates available for the month of December of the previous year. Similarly, for the month of July and August, DR will be calculated w.r.t. DR rates available for the month of June. As regards arrears of DR for the months of January and February and July and August, the same shall be disbursed by the disbursing authorities normally in the month of April and October respectively.
