Revised Dearness Relief Rates for 5th Central Pay Commission Employees Announced
Introduction
This article details the revised Dearness Relief (DR) rates for government employees whose pay scales are based on the 5th Central Pay Commission. These updates are effective from July 1, 2025, and January 1, 2026, ensuring continued financial support for eligible CPF beneficiaries.
Understanding the Dearness Relief Revision
The Department of Pension and Pensioners’ Welfare has issued an Office Memorandum outlining significant changes to Dearness Relief (DR) for specific categories of government employees. These revisions are crucial for individuals continuing to draw their pay under the pay scales established by the 5th Central Pay Commission. The update aims to adjust relief amounts in line with economic changes, ensuring that the purchasing power of these beneficiaries is maintained.
Eligibility and Previous References
This announcement follows up on previous directives, specifically referencing the Department’s Office Memorandum dated October 27, 2025. The President has approved enhancements to the Dearness Relief admissible to CPF beneficiaries who are receiving basic ex-gratia payments as per the 5th CPC guidelines. This ensures a structured and continuous review of financial assistance provided to these long-serving individuals.
Revised Dearness Relief for Specific CPF Beneficiaries
A key aspect of this revision pertains to surviving CPF beneficiaries who retired from service between November 18, 1960, and December 31, 1985. These individuals, who are entitled to a basic ex-gratia payment of Rs. 3000, Rs. 1000, Rs. 750, and Rs. 650 for Groups A, B, C, and D respectively (as per the OM dated June 27, 2013), will now receive enhanced Dearness Relief. This enhancement aims to better reflect current economic conditions and provide more substantial support.
Enhanced DR Rates for CPF Retirees
The revised Dearness Relief rates for the aforementioned group of CPF beneficiaries will be applied in two stages. Effective from July 1, 2025, the Dearness Relief will be 474% of their basic ex-gratia payment. Subsequently, from January 1, 2026, this rate will increase to 483%, providing a gradual yet impactful increase in their monthly entitlements.
Additional Categories Receiving Enhanced DR
The revision also extends to other critical groups of CPF beneficiaries. This includes widows and eligible dependent children of deceased CPF beneficiaries who retired before January 1, 1986, or who died in service before that date. These individuals are entitled to a revised ex-gratia payment of Rs. 645 per month (as per the OM dated June 27, 2013). Additionally, Central Government employees who retired on CPF benefits before November 18, 1960, and are currently receiving ex-gratia payments of Rs. 654, Rs. 659, Rs. 703, and Rs. 965 will also see their DR enhanced.
Revised DR Rates for Other Beneficiary Groups
For these additional categories, the Dearness Relief enhancement will also be implemented in two phases. From July 1, 2025, the enhanced Dearness Relief will be 466% of their respective basic ex-gratia payments. This rate will be further increased to 475% from January 1, 2026, ensuring that a broader spectrum of long-term CPF beneficiaries benefits from these updated relief measures.
Important Information
| Date of Effect | Rate of Dearness Relief per month (for retirees from 18.11.1960 to 31.12.1985) | Rate of Dearness Relief per month (for other eligible categories) |
|---|---|---|
| 01.07.2025 | 474% | 466% |
| 01.01.2026 | 483% | 475% |
Payment and Disbursal Procedures
Any payment of Dearness Relief that results in a fraction of a rupee will be rounded up to the nearest whole rupee. The responsibility for accurately calculating the quantum of Dearness Relief payable to each individual rests with the respective Pension Disbursing Authorities. This includes all nationalized banks and other authorized disbursing entities, who must ensure precise computation for every case.
Consultation and Constitutional Mandate
For personnel serving within the Indian Audit and Accounts Department, this order has been issued following consultation with the Comptroller and Auditor General of India. This action is in line with the constitutional mandate outlined under Article 148(5) of the Constitution of India, underscoring the collaborative approach in implementing such financial directives.
Basis for the Revision
The current revision is enacted in pursuance of directives from the Ministry of Finance, Department of Expenditure. Specifically, it aligns with Office Memorandums No. 1/4(iii)/2025-E.II(B) dated October 6, 2025, and No. 1/1(iii)/2026-E.II(B) dated April 22, 2026, which provide the foundational authority for these adjustments.
Conclusion
The announcement of revised Dearness Relief rates for 5th Central Pay Commission employees signifies a commitment to supporting long-term beneficiaries. These phased increases, effective from mid-2025 and early 2026, aim to provide enhanced financial relief and acknowledge the contributions of these individuals. Pension disbursing authorities are tasked with the accurate implementation of these updated rates.
Frequently Asked Questions
What is the primary purpose of this Office Memorandum?
The memorandum announces the revised rates of Dearness Relief for employees continuing to draw pay under the 5th Central Pay Commission scales.
When are the new Dearness Relief rates effective from?
The revised rates are effective from two dates: July 1, 2025, and January 1, 2026.
Who is eligible for the enhanced Dearness Relief announced in the memorandum?
Surviving CPF beneficiaries who retired between November 18, 1960, and December 31, 1985, and specific other categories including widows, dependent children, and pre-1960 retirees are eligible.
What are the Dearness Relief rates for retirees who retired between November 18, 1960, and December 31, 1985?
The rates are 474% from July 1, 2025, and 483% from January 1, 2026.
What are the Dearness Relief rates for the other specified categories of CPF beneficiaries?
The rates for these categories are 466% from July 1, 2025, and 475% from January 1, 2026.
What is the ex-gratia payment for Group A retirees mentioned in the first category?
The basic ex-gratia payment for Group A retirees is Rs. 3000.
What happens if the Dearness Relief payment involves a fraction of a rupee?
Such payments will be rounded off to the next higher rupee.
Who is responsible for calculating the quantum of Dearness Relief payable?
Pension Disbursing Authorities, including nationalized banks, are responsible for the calculation.
Has the Comptroller and Auditor General of India been consulted for this order?
Yes, for persons serving in the Indian Audit and Accounts Department, this order was issued in consultation with the Comptroller and Auditor General of India.
Are there any specific references cited for this revision?
Yes, this revision is in pursuance of Ministry of Finance, Department of Expenditure’s OM No. 1/4(iii)/2025-E.II(B) dated 06.10.2025 & No.1 1/1 (iii)/2026-E.II(B) dated 22.04.2026.
