The Central Pension Accounting Office (CPAO) has released the sixth edition, 2026 of "Scheme for Payment of Pensions to Central Government Civil Pensioners Through Authorised Banks." According to reports from Zee News, this comprehensive rulebook covers all the rules about how dearness relief is paid to retired central government employees. The document provides detailed guidelines for various categories of pensioners and their entitlements.
As reported by Zee News, the rulebook states that dearness relief is paid automatically alongside pension. The document clarifies that "Dearness Relief is granted to the pensioners, including the persons drawing compassionate allowance under Rule 41 of CCS (Pension) 2021 and to family pensioners, at such rates and subject to such conditions as the Central Government may specify from time to time." This automatic integration ensures that pensioners receive both their basic pension and dearness relief without separate processing requirements.
The Confederation of Central Government Employees and Workers has written a letter to the Ministry of Finance urging expedited announcement of the next Dearness Allowance instalment due from July 1, 2026. In the letter dated September 24, 2026, the employees' body has requested the Department of Expenditure to speed up the process. As per the letter, once the Consumer Price Index (CPI) data and applicable formula determine the revised rates, the employees seek that the basic process be carried out at the earliest possible opportunity. The letter addresses concerns about increased expenses during the period following July, including second-term educational expenses, household expenditure, travel, and the upcoming festive season.
The next Dearness Allowance hike in July may raise the allowance for central government employees from 60% to 64%, based on the latest Consumer Price Index for Industrial Workers (AICPI-IW) data, as reported by Economic Times. However, the numbers are still an estimate as the government has yet to announce the final rate. The existing DA/DR rate stands at 60% from January 2026, following a progressive increase from 46% in July 2023 to 50% in January 2024, 53% in July 2024, 55% in January 2025, 58% in July 2025, and 60% from January 2026. The Confederation has clarified it seeks no advance payments but wants the pending process completed to settle arrears and revised salary payments through normal processes.
A 4-percentage-point increase from 60% to 64% would significantly impact employee compensation across different salary levels. For an employee earning ₹18,000 basic salary, DA would increase from ₹10,800 to ₹11,520, adding ₹720 per month. For a basic pay of ₹44,900, DA would increase from ₹26,940 to ₹28,736, adding ₹1,796 per month. For a basic pay of ₹56,100, the increase would be ₹2,244 per month. The Confederation has clarified it seeks no advance payments but wants the timely completion of the formal process to ensure dues from July 1 are reflected in salary without delay, with arrears arising to be regulated in the normal course.
