The Centre has increased Dearness Relief (DR) for certain old Central government employees and family beneficiaries who are still covered under the 5th Central Pay Commission-linked compensation structure, according to an Office Memorandum issued by the Department of Pension and Pensioners’ Welfare (DoP&PW) on May 22, 2026.
As per the official memorandum, the revised DR rates will apply from July 1, 2025, and January 1, 2026.
According to the DoP&PW order, “…the Dearness Relief admissible to the CPF beneficiaries in receipt of basic ex-gratia payment in the 5th CPC shall be enhanced.”
Who will get the higher DR?
The order applies to a limited category of old CPF (Contributory Provident Fund) beneficiaries and their eligible family members.
The first category includes surviving CPF beneficiaries who retired between November 18, 1960, and December 31, 1985, and receive basic ex-gratia payments.
For this group, the Dearness Relief has been revised to:
474% from July 1, 2025
483% from January 1, 2026
This applies to beneficiaries receiving ex-gratia payments of Rs 3,000, Rs 1,000, Rs 750, and Rs 650 for Group A, B, C and D employees, respectively.
Family pension-type beneficiaries also covered
The second category includes widows and eligible dependent children of deceased CPF beneficiaries who had either retired before January 1, 1986, or died while in service before that date.
These beneficiaries, who receive revised ex-gratia of Rs 645 per month, will now get:
466% DR from July 1, 2025
475% DR from January 1, 2026
The same revised rates will also apply to certain Central government employees who retired on CPF benefits before November 18, 1960, and are receiving ex-gratia payments of Rs 654, Rs 659, Rs 703, and Rs 965.
How payments will be handled
The government has clarified that if the DR calculation results in a fraction, it “shall be rounded off to the next higher rupee”.
The memorandum also said that the responsibility for calculating the exact DR amount in each case will lie with pension disbursing authorities, including nationalised banks.
Official backing
The DoP&PW said the order has been issued in line with approvals from the Ministry of Finance’s Department of Expenditure.
For employees serving in the Indian Audit and Accounts Department, the order has been issued in consultation with the Comptroller and Auditor General of India, as required under constitutional provisions.
As per the DoP&PW memorandum, these revised rates are meant only for the specific old CPF beneficiary categories still drawing benefits under the 5th Central Pay Commission framework.
Disclaimer: This story is based on the latest Office Memorandum issued by the Department of Pension and Pensioners’ Welfare (DoP&PW). The Dearness Relief revision applies only to specific old CPF/ex-gratia beneficiary categories covered under the order, not to all central government employees or pensioners. Individual payout amounts may vary based on eligibility and calculations by the pension disbursing authority.
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