DA news: DA for pensioners explained, who is eligible, impact of revision, pay structure and other details

Dearness Relief (DR) is an inflation-linked benefit paid to eligible retired central and state government employees and other public-sector pensioners. It is not generally offered in the private sector. 

Pensioners are retired central and state government employees, who are eligible for individual or family pension from the government. This is in continuance of their salaries and comprises a dedicated percentage towards inflation. This component is known as Dearness Allowance (DA) for employees, and Dearness Relief (DR) for pension.

DR is often paid to retired central and state government employees, railways and defence personnel, public sector staff, and bank employees across the country. The beneficiaries include close to 65 lakh pensioners across various pay scales.

Notably, in India, DA and DR are provided only to public sector employees and retirees. The private sector does not offer the same for employees or pensioners.

Dearness Allowance for pensioners — DR explained

• Who is eligible? Pensioners are retired employees of the central government who are eligible for individual or family pension.
• New pay structure: Changes in the pay structure are reflected in the pension of the retired employee, each time the Pay Commission rolls out a new salary structure.
• Impact of DA revisions: The pension of the retired individual is revised accordingly if the DA is hiked or changed by a particular pay commission.
• Re- employed pensioners: Pensioners are not eligible to get DA in case of re-employment and DA is granted on a time scale or fixed pay, according to a Clear Tax report.
• Pensioners who are residing abroad: Pensioners who reside abroad are not- eligible during re-employment but pensioners residing abroad without being re-employed are eligible for DA in their pension, the report added.