Latest Rules of Dearness Relief (DR) on Pension with Format of Reemployment Certificate

Dearness relief is granted on any kind of pension to the Govt Pensioner and the rate is equal to DA on Salary of the Govt Employees. DR, or Dearness Relief, is a type of allowance provided to government pensioners in India and also in some other countries to help them cope with the rising cost of living, particularly due to inflation. Logic behind admissibility of DR to the pensioners are basically due to Inflation Mitigation.

Inflation is the general increase in prices of goods and services over time, which erodes the purchasing power of money. Pensioners, especially retired government employees, are vulnerable to the impact of inflation as they receive a fixed pension amount. To ensure that their real income does not decline over time, governments provide Dearness Relief to help them keep up with the rising cost of living.

The other reason is Legal Obligations. India has laws or regulations in place that mandate the periodic revision of pensions to account for changes in the cost of living. These laws often require governments to provide Dearness Relief to pensioners as a way of fulfilling their commitment to provide a reasonable standard of living to retired employees.

Ensuring that retired government employees can maintain their standard of living in retirement is a matter of social equity. DR helps in reducing income inequality among pensioners, as those with lower pensions benefit proportionally more from these adjustments. It is also important that the Government recognize the importance of supporting retirees, especially those who have served the public sector. It is considered a matter of public policy to provide a safety net for retirees and ensure their financial well-being.

Now we may go through the rules of DR. The dearness relief is admissible on basic pension, Disability element / War injury element and additional pension also. This is not admissible on monetary allowance for gallantry awards, Constant Attendant Allowance and Special pension for blind. Percentage of Dearness relief is notified by the Government from time to time.

Rules of DR for Reemployed Exservicemen & Employed Family Pensioners

No dearness relief was payable to reemployed military pensioners and employed family pensioners prior to 17.7.1997. With effect from 18.7.97, dearness relief is admissible to employed family pensioners without any conditions.

With effect from 18.7.97, dearness relief on military pension in respect of reemployed pensioners is admissible subject to three conditions viz.,

(a) Should not have been a Commissioned Officer,

(b) Entire pension should have been ignored at the time of fixation of pay in the reemployed post,

(c) Basic pay should have been fixed in the minimum of the scale of pay in the reemployed post.

(d) In respect of reemployed pensioners who have been granted advance increments at the time of fixation of pay on account of being graduates etc., their pay is deemed to have fixed at minimum of the pay scale and Dearness relief is payable in such cases (Deptt of P&PW OM No.41/42/2007-P&PW dated 3.4.2008). Reemployed military pensioners should get the RE certificate signed by their re-employer (with seal) and submit the same to their Pension Disbursing Agency for regulating Dearness Relief on military pension. Specimen format of the RE certificate is here.

In SPARSH Portal, it is mandatory to declare whether you are reemployed or not. In case of reemployed, you need to submit reemployment Certificate duly signed by the Employer. Format of Reemployment Certificate is here.

Format of Reemployment Certificate

REEMPLOYMENT CERTIFICATE

(to be furnished by the reemployed defence pensioners to their Bankers for admitting dearness relief w.e.f. 18.7.1997)

Authority : Govt of India, Ministry of Personnel, Public Grievances & Pensions, Deptt of P&PW OM No.45/73/97-P&PW(G) dt.2.7.99 read with Deptt of P&PW OM No.41/42/2007-P&PW dt.3.4.2008.

Note : This certificate shall be completed and signed (with seal) by the Reemployer and issued in his Official letterhead.

C E R T I F I C A T E

1. Name of the reemployed pensioner : …………………….………………..
2. Army Regimental number : …………………….………………..
3. Date from which reemployed : …………………….………………..
4. Designation (at the time of joining) : …………………….………………..
5. Basic pay fixed at the time of joining: …………………….………………..
6. Scale of pay : …………………….………………..
7. Date of birth : …………………….………………..
8. Date of retirement from reemployment : …………………….………………..
The reemployed pensioner was NOT a Commissioned Officer or a Group Officer before his discharge.

The entire amount of military pension sanctioned was ignored in fixation of pay on reemployment ie., no part of pension was taken into account in such fixation of pay in the scale of pay of the reemployed post.

The pay (basic pay) in the reemployed post is fixed in the minimum of the scale of pay (however in case where pay has been fixed higher due to grant of advance increments, then the pay would be deemed to be fixed in the minimum of the scale of pay as clarified in Deptt of P&PW UO No.41/42/2007-P&PW dated 3.4.2008).

Station : Signature
Date : Name & Designation
Office Seal

This certificate is required to be signed and coloured Scanned copy is required to be uploaded in the SPARSH Portal.