DA Hike: The central government has increased dearness relief (DR) for old CPF beneficiaries and their eligible family members. The new rates will be effective from July 1, 2025, and January 1, 2026.

DA Hike News: The central government's Department of Pension and Pensioners' Welfare (DoPPW) issued an official order on May 22, providing significant relief to some former central government employees and their families. The government has decided to increase dearness relief (DR) for these employees. This decision applies to retired employees and their eligible family members who are still covered by the 5th Pay Commission (5th CPC). The new DR rates will be effective from July 1, 2025, and January 1, 2026.

Who will benefit?

This increased DR will be available only to a limited category of old CPF beneficiaries and their eligible family members. The first category includes living CPF beneficiaries who retired between November 18, 1960, and December 31, 1985, and who are receiving basic ex-gratia payments. The new DR rates for these individuals will be as follows:

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

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

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

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

These things will be kept in mind while calculating

The government has clarified that if an amount is calculated in paise when calculating DR, it will be rounded up to the next higher rupee as per the rules. For example, if the calculation comes to 200.15, it will be considered 201. The government has also stated that the responsibility for calculating the correct DR in every case lies with the pension disbursing agencies and public sector banks.

It should be noted that this DR hike is for a select few senior citizens who received ex-gratia under the old CPF (Contributory Provident Fund) scheme. In contrast, for general central employees and pensioners covered by the 7th Pay Commission, their dearness allowance (DA) and dearness relief (DR) are currently fixed at 60% (as of January 1, 2026).

PC: ABP News