DA Hike News: The Department of Pension and Pensioners’ Welfare (DoPPW) of the Central Government has issued an official order on May 22, giving major relief to some old central employees and their families. The government has decided to increase the dearness relief (DR) for them. This decision is for those retired employees and their eligible family members, who still come under the purview of 5th Pay Commission (5th CPC). The new DR rates will be applicable from 1 July 2025 and 1 January 2026.

Who will benefit?

This increased DR will be available only to limited category of old CPF beneficiaries and their eligible family members. The first category will include those surviving CPF beneficiaries, who have retired between 18 November 1960 and 31 December 1985 and who are getting basic ex-gratia payment. The new DR rates for these people will be as follows:-

• 474% from July 1, 2025
  483% from January 1, 2026

The second category will include widows and eligible dependent children of deceased CPF beneficiaries, as well as employees retired before November 18, 1960, who are receiving ex-gratia payment. The new DR rates for these will be as follows:-

• 466% from July 1, 2025
  475% from January 1, 2026

Since these rates will be applicable retrospectively (July 2025 and January 2025), the eligible beneficiaries will also be paid the dues of the previous months in full.

These things will be kept in mind while calculating

The government has made it clear that while calculating DR, if any amount comes in rupees, then it will be converted to the next higher rupee as per the rules. For example- if the calculation comes in 200.15, then it will be considered as 201. The government has also said that the responsibility of correct DR calculation in every case will lie with the pension paying agencies and government banks.

Let us tell you that this DR Hike is for a select number of senior citizens receiving ex-gratia under the old CPF (Contributory Provident Fund) scheme. In contrast, for general central employees and pensioners who come under the purview of the 7th Pay Commission, their Dearness Allowance (DA) and Dearness Relief (DR) are currently fixed at the rate of 60% (January 1, 2026).

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