7th Pay Commission: In big good news for retired employees, the PM Narendra Modi-led government is likely to provide "Dual family pension" gift to the families of armed forces personnel on the eve of festivals.
Under this scheme, the family of army personnel will receive a dual pension. Which means, the families of retiring soldiers will get two pensions-- i.e family pension along with special family pension for military service.
Notably, the government has implemented this pension scheme from September 24, 2012.
According to top sources, the Centre has fixed a minimum family pension of Rs 9,000 per month for armed forces personnel. If 12% Dearness Allowance is added to it, every pensioner will get a benefit of at least Rs 10,000 per month.
The office of Principal Controller of Defence Accounts (Pension), Prayagraj (Allahabad) has issues the order in this regard.
Interestingly, even if a soldier or officer has joined a government department or PSU after retiring from the military, his family will be entitled to get this dual pension, as per the order.
What is Dearness Allowance (DA)
Dearness Allowance (DA is part of the Basic Salary paid to government employees. DA is directly linked to the cost of living (CoL) adjustment allowance paid to government employees and pensioners linked to the Consumer Price Index to offset the impact of inflation. DA is fully taxable. In January 2019, the Central Government had increased the DA by three per cent.
DA is decided on the basis of the city that varies depending on the employee's office location. DA will be more for the employees in the urban area. While for semi-urban areas and villages employees DA will be less.
DA and AICPI
DA is linked to the All India Consumer Price Index (AICPI). For DA calculation, AICPI average is taken in the formula
How is DA calculated:
For the employees of Central Government
Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100
For Central Public Sector Employees
Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100