Dearness Relief Hiked to 55% for Pensioners from Jan 2025

The Department of Pension & Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances & Pensions, has formally notified the enhancement of Dearness Relief (DR) for Central Government Pensioners and Family Pensioners from 53% to 55% of the basic pension/family pension. This revised rate will take effect from January 1, 2025.

The decision follows the President’s approval and comes through Office Memorandum No. 42/02/2024-P&PW(D) dated April 11, 2025. The move is aimed at offsetting the rising cost of living for pensioners and is part of the biannual DR revision based on the 7th Pay Commission’s recommendations.

Who Will Benefit from the Revised DR?

The enhanced Dearness Relief will apply to the following categories of pensioners:

Civilian Central Government Pensioners/Family Pensioners, including those absorbed in PSUs/Autonomous Bodies where relevant orders have been issued.
Armed Forces Pensioners/Family Pensioners and Civilian Pensioners paid from Defence Service Estimates.
All India Services Pensioners/Family Pensioners.
Railway Pensioners/Family Pensioners.
Pensioners receiving provisional pension.
Burma Civilian Pensioners and displaced Government Pensioners from Burma/Pakistan, as per previous orders dated 11.09.2017.

Key Implementation Guidelines

Rounding Off: Any fraction of a rupee in the calculated DR amount will be rounded off to the next higher rupee.
Dual Pension Cases: Pensioners receiving more than one pension will continue to receive DR only on one pension, as per existing rules.
Re-employed Pensioners: DR for employed family pensioners and re-employed pensioners will be regulated under Rule 52 of CCS (Pension) Rules, 2021 and DoPPW OM dated 02.07.1999.

Disbursement Instructions Issued to Banks

The memorandum directs Accountant Generals and authorized pension disbursing banks to arrange DR payment based on the new rates without waiting for further instructions. This follows earlier circulars from the Comptroller and Auditor General and the Reserve Bank of India, reinforcing decentralized implementation through banks and AG offices.

Special Cases and Future Communication

Retired Judges of the Supreme Court and High Courts: Separate orders will be issued by the Department of Justice.
Indian Audit and Accounts Department personnel: Orders are being issued in consultation with the CAG as mandated under Article 148(5) of the Constitution.

The notification also confirms that the Hindi version of the Office Memorandum will be released soon.

Conclusion

This increase of 2% in Dearness Relief, though modest, will provide crucial support to over 60 lakh pensioners coping with inflationary pressures. Pension disbursing authorities and banks are expected to implement the new rates swiftly, ensuring timely benefits without administrative delays.

View DoPT OM: