Lottery for retired employees! Central government increased the pension, big money will come in the account from this date

The Central Government has given a huge and wonderful relief to certain old central employees and their families. The government has officially announced a bumper increase in Dearness Relief (DR) for all of them. This big and important decision of the government has been taken for the beneficiaries of those elderly retired employees and their families who are still receiving their pension or other financial benefits under the compensation structure linked to the 5th Pay Commission (5th CPC).

The Department of Pension and Pensioners’ Welfare (DoP&PW) has put complete information about this decision before the country by issuing a new office memorandum on 22 May 2026. According to the new order issued by the government, the increased DR rates will be considered applicable from July 1, 2025 and January 1, 2026 only. It is clearly stated in this government order that this big increase is being made in the dearness relief of CPF (Contributory Provident Fund) beneficiaries who receive basic ex-gratia payment under the 5th Pay Commission.

Know which special people will have the increased money in their pockets

The benefit of this dearness relief extended by the government is going to be available only to a very limited category of old CPF beneficiaries and their eligible family members. In the first category of this scheme, those old CPF retired employees have been included, who had retired from government service between 18 November 1960 and 31 December 1985 and are currently receiving ex-gratia payment from the government.

The government has fixed the new and revised DR rates for these elderly employees as follows:

• From July 1, 2025, dearness relief at the rate of 474% will be given to these employees.
• From January 1, 2026, this rate will be further increased to 483%.

Let us tell you that this huge increase in dearness relief will be fully applicable only to those beneficiaries who get basic ex-gratia of Rs 3000, Rs 1000, Rs 750 and Rs 650 respectively as per the post of Group A, B, C and D employees.

Family members of deceased employees will also get bumper benefits

The government has shown sensitivity in this decision and has taken full care of the families of the employees. The second category of this scheme covers the widows and their dependent children of those deceased CPF employees who either retired from service before January 1, 1986 or who died suddenly while in service. All these beneficiaries are currently given a revised ex-gratia payment of Rs 645 per month by the government. Now after the new decision of the government, they will also get increased benefits:

• From July 1, 2025, DR at the rate of 466% will be given to these beneficiaries.
• This rate will be increased to 475% DR from January 1, 2026.

Along with this, the government has made this rule easier and made it completely clear that during the entire calculation of Dearness Relief (DR), if any amount comes in decimal (money), then it will be rounded off to the next whole rupee so that no one faces any problem.

Full responsibility for calculation of new DR handed over to banks

According to the new guidelines of the government, now the entire responsibility of calculating the correct DR amount in the case of each pensioner will be on the concerned pension paying agencies and government banks. Let us tell you that this important order has been issued officially only after getting the final approval of the Expenditure Department of the Finance Ministry.

Apart from this, special advice has also been taken from the Comptroller and Auditor General of India (CAG) in matters related to the employees of the Indian Accounts and Audit Department. Finally, the government has once again clarified that this revised and increased DR will be considered applicable only to those old CPF beneficiaries who are currently still receiving benefits under the 5th Pay Commission rules.