The Department of Pension & Pensioners’ Welfare, under the Government of India, has authorized the release of an additional installment of Dearness Relief (DR) for Central Government Pensioners and Family Pensioners, effective from July 1, 2025. This Office Memorandum revises the DR rate from the existing 55% to 58% of the basic pension or family pension, which includes any applicable additional pension. The enhanced rate is applicable to a broad range of beneficiaries, including Civilian Central Government Pensioners, Armed Forces Pensioners, All India Service Pensioners, and Railway Pensioners. It also covers those in receipt of provisional pension and specific categories of displaced government pensioners from Burma and Pakistan. The instructions mandate that pension disbursing authorities, such as nationalized banks, are responsible for calculating and arranging the payment of this revised DR. Fractional amounts of DR are to be rounded off to the next higher rupee. The order confirms that existing provisions related to DR for employed family pensioners and re-employed pensioners, as well as those receiving more than one pension, remain unchanged.
No. 42/02/2024-P&PW(D)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi-110003
Date :- 8 October, 2025
OFFICE MEMORANDUM
Subject : – Release of an additional installment of Dearness Relief (DR) to Central Govt. Pensioners/Family Pensioners revised rate with effective from 01.07.2025-reg.
The undersigned is directed to refer to this Department’s OM No. 42/02/2024-P&PW(D) dated 11.04.2025 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief admissible to Central Government Pensioners/Family Pensioners shall be enhanced from the existing rate of 55% to 58% of the basic pension/family pension (including additional pension/family pension) w.e.f 01st July, 2025.
2. These rates of DR will be applicable to the following categories:-
i. Civilian Central Government Pensioners/Family Pensioners including Central Govt. absorbee pensioners in PSU/Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No. 4/34/2002-P&PW(D)Vol.II dated 23.06.2017 for restoration of full pension after expiry of commutation period of 15 years.
ii. The Armed Forces Pensioners/Family Pensioners and Civilian Pensioners/Family Pensioners paid out of the Defence Service Estimates.
iii. All India Service Pensioners/Family Pensioners.
iv. Railway Pensioners/Family Pensioners.
v. Pensioners who are in receipt of provisional pension
vi. The Burma Civilian Pensioners/Family Pensioners and Pensioners/families of displaced Government Pensioners from Burma/ Pakistan, in respect of whom orders have been issued vide this Department’s OM No. 23/3/2008-P&PW(B) dated 11.09.2017.
3. The payment of Dearness Relief involving a fraction of a rupee shall be rounded off to the next higher rupee.
4. Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in Rule 52 of CCS (Pension) Rules, 2021 and this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999 as amended from time to time. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension will remain unchanged.
5. In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.
6. It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case.
7. The offices of Accountant General and authorised Pension Disbursing Banks are requested to arrange payment of Dearness Relief to Pensioners/Family Pensioners on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528- TA, 11/34-80-11 dated 23/04/1981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.
8. In so far as the persons serving in Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
9. This issues in accordance with the Ministry of Finance, Department of Expenditure’s OM No. 1/4(i)/2025-E.II(B) dated 06.10.2025.
Hindi version will follow.
(Divya A B)
Director to the Government of India
1. All Ministries/Departments of the Government of India
2. Chief Secretaries and AGs of all States/UTs.
3. CMDs/CPPCs of all authorised Pension Disbursing Banks
4. C&AG of India, UPSC, etc. as per standard endorsement list.
5. Reserve Bank of India (RBI) for Information.
