The dearness allowance (DA) for state government employees is still not settled. Government employees’ organizations are continuing to protest, demanding the pending DA.
Meanwhile, Malay Mukherjee, General Secretary of the West Bengal State Government Employees Confederation, shared important information about the dearness relief (DR) for pensioners. In a recent interview, he explained the difference between DA and DR and the benefits available to pensioners. His analysis is very important for lakhs of pensioners in the state.
DA vs DR: What is the Difference?
Malay Mukherjee explained that the allowance government employees get while in service is called Dearness Allowance (DA). For retired employees or pensioners, it is called Dearness Relief (DR). The main difference is in the calculation. After retirement, the basic pay of an employee becomes half or 50%. For example, if an employee’s basic pay is ₹40,000, the pension will be based on ₹20,000.
How is DR of Pensioners Calculated?
The DR of pensioners is calculated on the halved basic pay. For example, if a pensioner gets ₹20,000, their DR will be calculated on that ₹20,000.
The main difference is that the basic pay of serving employees increases by 3% every year, so their DA also increases. But the basic pension of pensioners is fixed, so their DR is calculated on the fixed amount. This means that even if the DA and DR rates are the same, the actual amount for pensioners is less.
From Malay Mukherjee’s explanation, it is clear that pensioners will get DR at the same rate as the DA for state employees. But because their basic pension is lower, their relief amount will also be lower. Many pensioners were confused about this, but Malay Babu’s explanation has clarified it. Pensioners and state employees are now waiting to see the steps the government will take regarding DA.