The Central Government has given big relief to some old central employees and their families. The government has announced to increase Dearness Relief (DR). This decision is for those retired employees and family beneficiaries who are still getting benefits under the compensation structure linked to the 5th Pay Commission (5th CPC).
The Department of Pension and Pensioners Welfare (DoP&PW) gave this information in the office memorandum issued on 22 May 2026. The new DR rates will be applicable from 1 July 2025 and 1 January 2026. It has been said in the government order that the dearness relief of CPF (Contributory Provident Fund) beneficiaries receiving basic ex-gratia payment under the 5th Pay Commission will be increased.
Who will get the benefit?
This increased DR will be available to limited category of old CPF beneficiaries and their eligible family members. The first category includes those CPF retired employees who retired between 18 November 1960 and 31 December 1985 and are receiving ex-gratia payment.
The new DR rates for these people will be as follows.
474% from July 1, 2025
483% from January 1, 2026
This increase will be applicable to those beneficiaries who get ex-gratia of Rs 3000, Rs 1000, Rs 750 and Rs 650 for Group A, B, C and D employees respectively.
Family members will also get benefits
The second category includes widows and dependent children of deceased CPF employees. This also includes those employees who retired before January 1, 1986 or died while on the job. These beneficiaries currently get a revised ex-gratia of Rs 645 per month. Now they will get it.
466% DR from July 1, 2025
475% DR from 1 January 2026
The government has also made it clear that in the calculation of DR, if any amount is in decimal then it will be rounded off to the next whole rupee.
Banks will calculate DR
According to the government, the responsibility of calculating the correct DR amount in every case will be with the pension paying agencies and government banks. This order has been issued after the approval of the Expenditure Department of the Finance Ministry. At the same time, advice has also been taken from the Comptroller and Auditor General of India in the matters of the employees of the Indian Accounts and Audit Department. The government has clarified that this revised DR will be applicable only to those old CPF beneficiaries who are still receiving benefits under the 5th Pay Commission.
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