Retirement Benefits

Grant of Dearness Relief

No.42/2/97 - P&PW(G)
Ministry of Personnel, Public Grievances and Pensions
(Department of Pension & Pensioners’ Welfare)
Third Floor, Lok Nayak Bhavan, New Delhi
Dated: 27th October, 1997

Grant of Dearness Relief to Pensioners in Implementation of Government's decisions on the recommendations of the Fifth Central Pay Commission.

The undersigned is directed to state that in pursuance of Government decisions on the recommendations of the Fifth Central Pay Commission announced in this Department's Resolution No. 45/86/97-P&PW(A) dated the 27th Oct., 1997, the President is pleased to decide that dearness relief shall be paid to All Central Government pensioners and family pensioners to compensate them for rise in cost of living beyond average CPI 1510 at the uniform rate as indicated below:-
Period Rate of DR p.m.
From 01.07.96 to 31.12.96 4% of Pension/Family Pension
From 01.01.97 to 30.06.97 8% of Pension/Family Pension
01.07.97 Onwards 13% of Pension/Family Pension

For the purpose of these orders:
  1. Pension/family pension in the case of pre - 1.1.1996 retirees and where family pension was sanctioned prior to 1.1.1996, means the consolidated pension or consolidated family pension as the case may be, effective from 1.1.1996 in terms of orders issued in this Department's OM No. 45/86/97 - P&PW(A) dated th Oct., 1997.

  2. In the case of pensioners who retire from service on or after 1.1.1996 or where family pension is sanctioned for the first time on or after 1.1.1996, pension/family pension means the basic pension/basic family pension as the case may be in terms of this Department's OM No. 45/86/97 - P&PW(A) dated the Oct., 1997.

  1. Payment of dearness relief involving a fraction of a rupee shall be rounded off to the next higher rupee.

  2. Other provisions governing grant of dearness relief to pensioners such as regulation of dearness relief during employment/re-employment, regulation of dearness relief where more than one pension is drawn etc, will remain unchanged.

  3. A ready reckoner showing the dearness relief payable from (i) 1.7.1996 to 31.12.1996 (ii) 1.1.1997 to 30.6.1997 and (iii) from 1.7.1997 onwards in terms of these orders is enclosed.

  1. This Department Office Memorandum No. 42/8/96 - P&PW(G) dated 12th Sept., 1996 and 42/2/97 - P&PW(G) dated 3rd April, 1997 sanctioning dearness relief to pensioners w.e.f. 1st July, 1996 and 1st Jan. 1997 are hereby superseded. Payments on account of dearness relief made to pensioners/family pensioners in terms of these orders will be adjusted against the dearness relief payable to them under the revised rates in terms of this Order. If the entire amount cannot be adjusted from the arrears of dearness relief payable under this Order, the balance amount will be adjusted against future payment of dearness relief in terms of this Order.

  2. These orders apply to all civil pensioners.

    These orders apply to Armed Forces pensioners, civilian pensioners paid out of the Defence Services Estimates, All India Service pensioners and Railway pensioners.

    These orders do not apply to retired High Court and Supereme Court Judges, In their case separate orders will be issued by the administrative authorities concerned.

  3. The Accountants General and authorised Public Sector Banks are requested to arrange payment of relief to pensioners on the basis of above instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 5280TA.II/34- 80-II dated 23.4.1981 of the Comptroller and Auditor General of India addressed to all Accountants General and Reserve Bank of India Circular No. GANB No.2958/GA-64(ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

  4. In their application to the employees belonging to Indian Audit and Accounts Department these orders issue in consultation with the C&AG.


Note for guidance of pension disbursing authorities:-

A statement indicating adjustment of DR w.e.f. 1.7.96 & 1.1.97 incase of pre-1996 pensioners/family pensioners is being circulated separately along with the Orders of consolditation of pension as on 1.1.1996.

Department of Personnel and Training
Department of Administrative Reforms & Public Grievances.

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