Dearness Relief Enhanced for CPF Beneficiaries under 5th CPC Series w.e.f. 1st July 2024

In a significant relief measure for pensioners under the Contributory Provident Fund (CPF) scheme, the Department of Pension & Pensioners’ Welfare (DoPPW) has issued an Office Memorandum (OM) dated 11 April 2025 announcing an enhancement of Dearness Relief (DR) rates for those receiving basic ex-gratia payments. This move, effective from 01.07.2024, will benefit retired CPF beneficiaries covered under the 5th Central Pay Commission (CPC) framework.

Key Highlights of the DR Enhancement

The revised rates are part of the government’s ongoing efforts to mitigate the impact of inflation on pensioners not covered under the regular pension scheme. Here’s how the Dearness Relief has been revised:

1. For Surviving CPF Beneficiaries Retired Between 18.11.1960 and 31.12.1985:

• Beneficiaries receiving basic ex-gratia payments of ₹3000, ₹1000, ₹750, and ₹650 for Groups A, B, C & D respectively, will now receive:
  • Enhanced DR from 443% to 455% of the basic ex-gratia amount w.e.f. 01.07.2024.
• This is an increase over the rate fixed vide OM No. 1/10/2012-P&PW(E) dated 27th June 2013.

2. For Widows and Eligible Dependents of Deceased CPF Beneficiaries:

• Applies to those who retired or died before 01.01.1986, and are in receipt of revised ex-gratia @ ₹645/- per month (as per 2013 orders).
• The DR rate is enhanced from 435% to 447% of the ex-gratia amount w.e.f. 01.07.2024.

3. For CPF Retirees Drawing Ex-Gratia Before 18.11.1960:

• Ex-gratia payments of ₹654/-, ₹659/-, ₹703/-, and ₹965/- will now carry DR at the revised rate of 447%, up from 435%.

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Implementation Details

• Rounding Off: DR amounts involving fractions of a rupee will be rounded off to the next higher rupee.
• Responsibility of Disbursal: Pension disbursing authorities, including nationalized banks, are tasked with ensuring accurate computation and disbursement of the revised DR.
• Audit Department Coverage: For pensioners under the Indian Audit and Accounts Department, this OM has been issued in consultation with the Comptroller & Auditor General of India, as mandated by Article 148(5) of the Constitution.

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Background and Legal Reference

This revision is issued in line with the Ministry of Finance’s OM No. 1/6(2)/2024-E.II(B) dated 07.11.2024, and follows earlier DR revisions based on OM No. 1/10/2012-P&PW(E) dated 27.06.2013.

See Original OM: