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Friday, August 08, 2014

Dearness Relief Factor (DRF)

Pensioners can work out the amount of increase in the dearness relief with reference to
their Dearness Relief Factor (DRF) once they come to know the increase in the Number of Slabs.
Half yearly increase in number of slabs ( based on AICPI-IW ) is invariably published in the LIC Pensioners Chronicle on the last day of December and July or latest by in the first week of January and July. A few others including the Indian Banks Association also do publish the increase / decrease in the slabs in respect of serving bank employees and pensioners.
Pensioners, who do not know (not been advised by office) the DRF, may work out their DRF
based on the component of Dearness Relief out of the total pension divided by the Total Number of slabs applicable to relevant pay scale. 


An example: Shri SRK retired as AAO on 30-06-2014 at the maximum of pay scales (no stagnation increment etc) in the pay scale applicable to 01-08-2007. His basic pension is fixed at Rs.16320/- and he received his first pension for the month of July 2014. The total pension credited to his bank account included dearness relief of Rs.15642.72 . Total number of slabs for February to July was 639 ( for 2007 pay scales ).Shri SRK's DRF is ____ Rs.15642.72 / 639 slabs. = 24.4801.
DR increase for August 2014 to January 2015 is 17 slabs.
DR increase works out to DRF x Increase in Number of Slabs. : 24.4801 x 17 = Rs.416.16
Total DR for August 2014 shall be.....Rs15642.72 + Rs.416.16 = Rs.16058.88 or Rs.16059.00.
[ The amount should be rounded of to next rupee ; even 0.01 is rounded of to Re.1.00 in case of GOI and RBI pensioners and family pensioners . DRF works well, at times, with difference of fraction of a rupee because of rounding off to next rupee ]

Please also see below :
Dearness Relief Factor of Assistant Accounts Officer retired on different dates-in different
Pay Scales.
@ Courtesy: CHM,  # Courtesy: RKS
SN (A 1992 PENSIONER)