Archive · 21 Jul 2026
DA, DR Hike: Pensioners to Get Higher Relief
Pensioners in India, including retired government employees, railways and defence personnel, public sector staff, and bank employees, receive Dearness Relief (DR) as part of their pension to help with inflation.
This DR is similar to the Dearness Allowance (DA) given to current employees.
The government has recently announced a 2% hike in DR, effective from January 2026, and a 3% hike in July 2025.
Pensioners have been demanding more changes, like increasing the minimum pension to 67% of their last pay and allowing them to choose between different pension systems.
Some state governments have also increased DA for their employees, with West Bengal raising it by 20% and other states by 2%-9%.
The government has made some adjustments but has not fully addressed all the pensioners' demands.
Pensioners receive Dearness Relief (DR) to mitigate inflation, similar to Dearness Allowance (DA) for current employees.
Recent DR hikes include a 2% increase effective from January 2026 and a 3% hike in July 2025.
Pensioners demand comprehensive pension restructuring, minimum pension increase to 67% of Last Pay Drawn (LPD), and the option to choose between different pension systems.
State governments have also increased DA, with West Bengal raising it by 20% and other states by 2%-9%.
The government has made some adjustments but has not fully addressed all pensioners' demands.
- Who
- Retired government employees, railways and defence personnel, public sector staff, and bank employees.
- What
- Dearness Allowance (DA) and Dearness Relief (DR) hikes.
- When
- Effective from January 2026 and July 2025.
- Where
- Across India, with variations based on state and location.
- Why
- To mitigate inflation and adjust for cost-of-living changes.
Pensioners' Demands
Government's Position
Pension Restructuring
Pensioners' Demands
Pensioners demand comprehensive pension restructuring, improvements, and parity in payments.
Government's Position
The government has made some adjustments but has not fully addressed all demands.
Minimum Pension Increase
Pensioners' Demands
Pensioners want the minimum pension increased to 67% of the Last Pay Drawn (LPD).
Government's Position
The government has not yet announced any changes to the minimum pension percentage.
Pension System Choice
Pensioners' Demands
Pensioners want the option to choose between different pension systems (OPS, NPS, UPS).
Government's Position
The government has not provided clear guidelines on allowing pensioners to choose their pension system.
- Dearness Allowance (DA)
- A component of monthly salary to mitigate inflation.
- Dearness Relief (DR)
- Similar to DA but for pensioners.
- Eligibility for DA/DR
- Retired central and state government employees, railways and defence personnel, public sector staff, and bank employees.
- DA/DR Calculation
- Based on the 12-month average of the All-India Consumer Price Index (AICPI).
- Recent DA/DR Hikes
- 2% hike effective from January 2026, 3% hike in July 2025.
- State Government Hikes
- West Bengal hiked DA by 20%, other states by 2%-9%.