New Delhi. The Central Government has decided to provide major relief to old central employees and their families. The government has announced an increase in Dearness Relief (DR), which will benefit thousands of pensioners and their dependents.
This decision is especially for those beneficiaries who are still receiving benefits under the Fifth Pay Commission. The Department of Pension and Pensioners’ Welfare, in an order issued on May 22, 2026, said that the new DR rates will be applicable from July 1, 2025 and January 1, 2026.
Who will get the benefit?
The dearness relief extended by the government will benefit a limited category of old CPF (Contributory Provident Fund) beneficiaries and their families. This includes employees who retired between 18 November 1960 and 31 December 1985 and are currently receiving ex-gratia payments.
Inflation relief increased so much
According to the government, the new DR rates for these beneficiaries will be as follows. 474 percent from July 1, 2025 and 483 percent from January 1, 2026. This increase will be applicable to Group A, B, C and D category beneficiaries, who receive ex-gratia payment at different rates.
Relief to family members too
The government has also provided relief to the widows and dependent children of deceased CPF employees. This includes those families whose members retired before January 1, 1986 or died during service. The new rates of dearness relief for these beneficiaries have been fixed as follows. 466 percent from July 1, 2025 and 475 percent from January 1, 2026.
Responsibility given to banks
The government has said that the responsibility of calculating and paying the correct DR amount will be with the pension paying agencies and public sector banks. This decision has been implemented after the approval of the Finance Ministry. The government has clarified that if any amount comes in decimal during the calculation, it will be converted to the next whole rupee.
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