Dearness Relief for Central Government pensioners rises to 63 per cent
Dearness Relief for Central Government pensioners rises from 60% to 63% of pension from 1 July 2026.
- Document
- Circulars
- Dated
- 10 Nov 2026
- Effective
- w.e.f. 01st July, 2026
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Dearness Relief (DR) rises from 60% to 63% of basic pension.
- The increase applies to family pensions too, including additional pension.
- Part-rupee DR amounts are now rounded up to the next whole rupee.
- The increase is effective from 1 July 2026, though the circular is dated 10 November 2026.
- No action is needed from pensioners.
In short
This circular, issued on 10 November 2026 and listed under ESIC, confirms that Dearness Relief (DR, an allowance that offsets rising prices) for Central Government pensioners and family pensioners rises from 60% to 63%, with effect from 1 July 2026. The rise follows an Office Memorandum of 24 April 2026 from the government's pension department. It tells pension offices and banks to pay the new rate without waiting for further instructions.
What has changed
How it worked before
Until now, DR for Central Government pensioners and family pensioners was 60% of basic pension, including additional pension.
What has changed
The DR rate is now 63% instead of 60%. Any part-rupee DR amount is rounded up to the next whole rupee.
Who this affects
Anyone who receives a Central Government pension or family pension. This includes pensioners from the armed forces, railways and All India Services, and provisional pensioners and family pensioners. It does not apply to employees still in service.
An example
Illustration only: a retired railway employee has a basic pension of ₹40,000 a month. Under the old 60% rate, DR was ₹24,000. Under the new 63% rate from 1 July 2026, DR becomes ₹25,200, which is ₹1,200 more each month.
What you should do
No action is needed. The circular is addressed to pension offices and banks, which are asked to pay the revised DR.
If you do nothing
Nothing in the circular asks pensioners to do anything, so there is no consequence for doing nothing. The pension office and bank are the ones asked to pay the revised DR.
The terms explained
- Dearness Relief (DR)
- An extra amount added to pension to offset rising prices. It is calculated as a percentage of basic pension.
- Family pensioner
- A person who receives pension after the original pensioner has died, such as a spouse or dependant.
- Additional pension
- An extra amount paid on top of basic pension, which the DR rate also applies to.
- Pension Disbursing Bank
- A bank authorised by the government to pay pensions to pensioners.
The original document
| Issued by | ESIC |
|---|---|
| Document | Circulars |
| Full title | Release of an additional installment of Dearness Relief (DR) to Central Government Pensioners/Family Pensioners - Revised rate with effect from 01st July, 2026 - reg |
| Issued on | 10 November 2026 |
| Effective | w.e.f. 01st July, 2026 |
About Patron Accounting LLP
Patron Accounting LLP is a CA and CS-led accounting and compliance firm that has been working with businesses across India since 2019. We handle the work that keeps a company correct with every department it answers to: day-to-day bookkeeping and accounting, GST registration and returns, income tax filing and assessments, TDS, payroll and PF/ESI, company and LLP incorporation, ROC and MCA compliance, statutory and internal audit, physical stock and inventory audits, trademark and other registrations, and the certificates and reports that banks, buyers and regulators ask for.
Our clients range from a first proprietorship registering for GST to established companies running operations across several states. Much of our work is exactly this: reading what a department has published and telling a business, in plain terms, whether it changes anything for them.
We operate from five offices and serve clients across the rest of India remotely:
- Pune (HQ): RTC Silver, B4-708, Sai Satyam Park, Wagholi, Pune, Maharashtra 412207
- Mumbai: 104, Rajshila Building, 597 J.S.S. Road, Marine Lines, Mumbai 400002
- Delhi: 3rd Floor, B-6/154-155, Sector 5, Rohini, Delhi 110085
- Gurugram: Pioneer Urban Square, B109, Golf Course Ext Road, Sector 62, Gurugram 122098
- Ahmedabad: Phoenix Tower, 1107, near Commerce Six Road, Drive In Road, Navrangpura, Ahmedabad, Gujarat 380009
If anything on this page affects you and you would like somebody to look at your own position, we are glad to help. Call +91 94594 56700, write to sales@patronaccounting.com, or visit patronaccounting.com. The first conversation costs nothing.