Revised Dearness Relief for CPF Pensioners Under 5th Central Pay Commission: Detailed Overview

The Department of Pension and Pensioners’ Welfare, under the Ministry of Personnel, Public Grievances and Pensions, has issued an important Office Memorandum dated 22.05.2026 revising the Dearness Relief (DR) payable to specified CPF beneficiaries linked to the 5th Central Pay Commission (5th CPC) structure. This change affects a distinct category of retired Central Government employees and certain family members who receive ex-gratia payments.

This article provides a structured analysis of the revised DR rates, categories of eligible beneficiaries, effective dates, and the responsibilities placed on Pension Disbursing Authorities and banks.

Office Memorandum and Reference Provisions

The revision of DR has been notified through F. No. 42/02/2024-P&PW(D)/E-9475 dated 22.05.2026. The Office Memorandum (OM):

  • Refers back to the earlier OM No. 42/02/2024-P&PW(D) dated 27.10.2025
  • Implements the decision of the President of India to enhance DR for certain CPF beneficiaries
  • Has been issued pursuant to the approvals of the Ministry of Finance, Department of Expenditure through:
    • OM No. 1/400/2025-E.11(B) dated 06.10.2025, and
    • OM No. 1/100/2026-E.11(B) dated 22.04.2026
  • In respect of those serving in or connected with the Indian Audit and Accounts Department, the order is issued in consultation with the Comptroller and Auditor General of India in accordance with Article 148(5) of the Constitution of India

Note: The OM specifically targets CPF beneficiaries drawing benefits in accordance with the 5th CPC pay structure and certain ex-gratia recipients, and not the general body of Central Government pensioners under other pay commission regimes.

Scope of the Revision

The revision applies to:

  • CPF beneficiaries receiving basic ex-gratia linked to 5th CPC norms
  • Certain surviving CPF retirees from specified time periods
  • Widows and eligible dependent children of deceased CPF beneficiaries
  • Certain pre-18.11.1960 CPF retirees receiving ex-gratia payments

The enhancement is not a revision of the basic ex-gratia amount itself, but specifically an increase in Dearness Relief rates over and above such ex-gratia payments.

Effective Dates and New DR Rates

The President has approved two distinct revisions of Dearness Relief for the relevant categories, effective from:

  • 01.07.2025
  • 01.01.2026

The DR is payable as a percentage of the basic ex-gratia amount and differs depending on the category of beneficiary.

Category I: Surviving CPF Beneficiaries (Retirement between 18.11.1960 and 31.12.1985)

Eligibility Conditions

The first category includes surviving CPF beneficiaries who:

  • Retired from Central Government service between 18.11.1960 and 31.12.1985, and
  • Are receiving basic ex-gratia at the following rates with effect from 04.06.2013, as per O.M. No. 1/10/2012-P&PW(E) dated 27.06.2013:
    • Group A – Rs. 3000
    • Group B – Rs. 1000
    • Group C – Rs. 750
    • Group D – Rs.