DR hike for pensioners: As government delays release of dearness relief and arrears, Bharat Pensioners' Samaj urges cabinet secretary to intervene

Like central government employees eagerly awaiting the dearness allowance (DA) hike announcement, pensioners are also waiting to know when the government will announce a hike in dearness relief (DR).

As the pensioners continue to wait for the DR hike, the Bharat Pensioners Samaj (BPS), an organisation that claims to have 1 million central government pensioners as its members, wrote a letter to the Cabinet secretary, requesting him to intervene and instruct concerned departments to announce the DR hike soon.

In a letter dated October 22, 2026, Avinash Rajput, Secretary General of BPS, requested the Cabinet secretary to intervene with the Department of Pension and Pensioners’ Welfare (DoPWW) and the Department of Expenditure (DoE), Ministry of Finance, regarding the early announcement and release of the pending instalment of the DR to pensioners and family pensioners.


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Pensioners were waiting DR hike announcement before Dussehra, BPS writes

The BPS, in the letter, said that the pensioners were expecting the DR hike announcement before Dussehra (October 21).

“The delay has caused disappointment and uncertainty among pensioners, particularly elderly and financially dependent pensioners who look forward to this additional amount to meet their household and medical expenses,” the letter stated.

The festive season brings additional household and family expenditure, making the timely release of the enhanced DR particularly meaningful, the BPS said.

“Dearness relief is not a bonus or a discretionary favour; it is an essential adjustment intended to mitigate the impact of rising prices on the fixed incomes of pensioners. Timely disbursement is, therefore, important for their financial security and peace of mind,” said the BPS.

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The BPS requested the Cabinet secretary to take up the matter with the DOPPW and the DOE for the early announcement and release of the pending instalment of DR, along with arrears, to pensioners and family pensioners.

“We sincerely hope that the government will consider this request sympathetically and take expeditious action in the larger interest of retired employees who have devoted their working lives to the service of the nation,” wrote the BPS.

DR applicable from July 2026

The government calculates the DR based on the average 12-month retail inflation, measured through the All India Consumer Price Index – Industrial Workers (AICPI-IW). The new DR rate will be applicable from July 1, for which the retail average inflation of July 2025-June 2026 will be taken into account.

Once announced, pensioners will also get arrears for delayed months.

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Can the DR hike be 3 or 4 percentage points?

As per estimates, pensioners are likely to get a 3-percentage-point hike in DR, which will take the current rate of 60% DR to 63%. However, it will be known once the government announces it.

It was expected that the government would announce the DR rate hike after the Cabinet meeting on Wednesday (October 21). However, the meeting didn’t take place, leaving lakhs of central government pensioners disappointed.

However, the government can announce the DR hike without a Cabinet meeting also.