Central Government Announces Increased Dearness Relief for 5th Pay Commission Retirees Effective July 1, 2025

The Central Government has announced an increase in the Dearness Relief (DR) rates for certain retirees linked to the 5th Pay Commission.  

This move aims to improve the financial benefits for a specific group of old Central Government employees and their families. 

Details on Dearness Relief Hike for Retirees 

As per the Office Memorandum issued by the Department of Pension and Pensioners' Welfare (DoP&PW) on May 22, 2026, the DR rates will be revised from July 1, 2025, and January 1, 2026.  

For CPF beneficiaries retired between November 18, 1960, and December 31, 1985, the Dearness Relief has been increased to 474% from July 1, 2025, and 483% from January 1, 2026.  

This applies to those receiving ex-gratia payments of ₹3,000, ₹1,000, ₹750, and ₹650, respectively for Group A, B, C and D employees. 

Eligible Family Beneficiaries 

The hike also includes benefits for widows and eligible dependent children of deceased CPF beneficiaries who retired or died before January 1, 1986.  

Those belonging to this category and receiving ₹645 per month will benefit from a revised DR rate of 466% effective July 1, 2025, and 475% from January 1, 2026.  

Other eligible employees receiving payments of ₹654, ₹659, ₹703, and ₹965 will also see revised DR rates. 

Read More: DA Hike: Uttar Pradesh Raises Dearness Allowance by 2% to State Employees! 

Implementation and Calculation 

The revised rates will have to be implemented by the pension disbursing authorities, which include nationalised banks. Any calculations resulting in fractions will be rounded off to the next higher rupee.  

The changes are backed by approvals from the Ministry of Finance’s Department of Expenditure and consulted with the Comptroller and Auditor General of India for the Indian Audit and Accounts Department employees. 

Conclusion 

This revision in the Dearness Relief rates highlights the government's appreciation for the service of former employees under the 5th Pay Commission framework. While focusing on a particular segment of pensioners, the increased rates are expected to alleviate some of the financial constraints faced by these retirees and their families. 

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