7th Pay Commission Latest News Today 2022 (DR Calculator): Like Dearness Allowance for Central Government Employees, Central Government pensioners get Dearness Relief (DR) to compensate for the erosion of monthly pension value due to inflation.
The Government revises DA and DR rates for employees and pensioners together. Normally the DA and DR rates are declared twice a year in the months of March and September. With September on, employees and pensioners are eagerly awaiting the DA/DR hike announcement by the Central Government.
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Meanwhile, a utility on the Government’s official Pensioners’ Portal allows pensioners to calculate the DR and the gross pension/family pension.
Here’s a sample calculation: Suppose the Basic Pension/Family Pension before commutation is Rs 50,000 and the amount of pension committed is Nil. In this case, the calculator shows 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 amount pension commuted is Rs 20,000 then the DR amount will be Rs 17,000 and the amount of Gross Pension/Family Pension 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
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How DR arrears are paid
As mentioned above, the DR rate is normally declared twice a year in March and September. As per the pensioners’ portal, 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.
DR for the months of July and August is calculated based on DR rates available for the month of June.
The pensioners’ portal says that the arrears of DR for the month of Junayary & February and July & August are disbursed by the authorities normally in the month of April and October respectively.
Central Government Employees get an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment. For doing this, they don’t need any medical examination if the option is exercised within one year of retirement.
The DR rate for Central Government pensioners is decided as per the formula recommended by the 7th Pay Commission.
