The Department of Pension & Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances & Pensions, has officially announced that the Dearness Relief (DR) for Central Government Pensioners and Family Pensioners has been increased from 53% to 55% of their basic pension or family pension.
This revised rate will be applicable from January 1, 2025. The decision was approved by the President of India and is notified through Office Memorandum No. 42/02/2024-P&PW(D) dated April 11, 2025.
The main purpose of this increase is to help pensioners cope with the rising cost of living. This DR revision is part of the regular process conducted twice a year, in line with the recommendations of the 7th Pay Commission.
This enhanced DR will benefit various categories of pensioners, including civilian central government pensioners and their family pensioners, pensioners of the armed forces and their families, All India Services pensioners, railway pensioners, those receiving provisional pensions, and even certain pensioners from Burma and Pakistan as per earlier government orders.
The government has clarified a few key guidelines for the implementation of this DR hike. Any fraction in the DR amount will be rounded off to the next higher rupee. In cases where a person receives two pensions, DR will be paid on only one of them. Also, re-employed pensioners and employed family pensioners will get DR as per Rule 52 of the CCS (Pension) Rules, 2021, and a related order dated July 2, 1999.
Accountant Generals and pension disbursing banks have been instructed to begin disbursing the revised DR immediately without waiting for further directions. This step ensures smooth and timely payments through a decentralized approach, already supported by circulars from the Comptroller and Auditor General (CAG) and the Reserve Bank of India (RBI).
For some special cases like retired Judges of the Supreme Court and High Courts, and those from the Indian Audit and Accounts Department, separate orders will be issued soon by the concerned authorities. Overall, this increase in DR will provide some relief to lakhs of pensioners, helping them better manage their expenses amid inflation.
