The Central Government has approved a 3% increase in Dearness Relief (DR) for eligible central government pensioners and family pensioners. With this, the DR will rise from 60% to 63%, effective from July 1, 2026.

The Central Government has taken a significant step to provide relief from inflation to government employees and pensioners. The Union Cabinet has approved a 3% hike in Dearness Relief (DR) for pensioners and family pensioners, raising the rate from 60% to 63%. This new rate will come into effect on July 1, 2026. The primary beneficiaries of this decision will be eligible pensioners and family pensioners covered under the Old Pension Scheme (OPS) and the Unified Pension Scheme (UPS).

Notably, this increase comes at a time when the cost of daily living is consistently rising due to inflation. The question now arises: how much will the families of OPS and UPS pensioners receive each month following this hike, and what will their total pension amount be?

What is Dearness Relief (DR)?

Dearness Relief (DR) is an additional amount provided to central government pensioners and eligible family pensioners. It is calculated as a percentage of the basic pension. Previously, pensioners were receiving DR at a rate of 60%, which will now increase to 63%.

How much will the family pension increase under the OPS?

Under the Old Pension Scheme (OPS), in the event of an employee's death, the eligible family receives a family pension equivalent to 30% of the employee's last drawn basic salary. This amount is subject to a minimum of ₹9,000 and a maximum of ₹75,000 per month.

For instance, if the last drawn basic salary was ₹80,000, the family would receive a basic family pension of ₹24,000. At a 60% Dearness Relief (DR) rate, the total amount was ₹38,400. With the implementation of a 63% DR, the total payment will become ₹39,120—an increase of ₹720 per month.

What benefit will UPS pensioners receive?

Under the Unified Pension Scheme (UPS), an eligible family member is entitled to a family payout equivalent to 60% of the pension the employee was receiving just before their death. This amount is also subject to the increase in Dearness Relief.

For instance, if an employee was receiving a payment of ₹40,000 under the UPS, their eligible spouse would receive a basic family payout of ₹24,000. Previously, with a 60% DR, the total amount was ₹38,400; however, with the 63% DR, this will increase to ₹39,120. Consequently, UPS pensioners will also receive an additional ₹720 per month.