Railways, Department Of Posts Hike Dearness Relief By 2 Per Cent, How Much Will They Get

The Railway has hiked the dearness relief (DR) by 2 per cent for railway pensioners, effective January 1, 2026. The Ministry of Railways has officially sanctioned the hike through an official order. Now the DR will increase from 58 per cent to 60 per cent for pensioners and family pensioners. The DR is a supportive financial measure to keep pensioners protected against inflation. The increase provides the necessary cushion to railway pensioners.

Earlier on April 24, 2026, the Department of Pension & Pensioners’ Welfare (DoPPW) issued the order increasing the DR from 58 per cent to 60 per cent. This circular confirmed that the broader central government pension adjustments would be extended to railways as well.

The DoPPW circular said: “These rates of DR will be applicable to all central government Pensioners/Family Pensioners including Armed Forces Pensioners/Family Pensioners and Civilian Pensioners/Family Pensioners paid out of the Defence Service Estimates; Railway Pensioners/Family Pensioners; All India Service Pensioners/Family Pensioners; Pensioners who are in receipt of Provisional Pension and also to those Pensioners/Family Pensioners covered under this Department’s OM No. 4/34/2002-P&PW(D) Vol.II dated 23rd June, 2017 and para 6 of this Department’s OM No. 23/3/2008-P&PW(B) dated 11th September, 2017.”

Railways Pensioners DR Hike

In line with the same, the Ministry of Railways issued its official order on May 5, 2026, applying the same hike to railway pensioners. “This order shall apply mutatis mutandis on Railways also,” the Railways OM said.

For those in active service (employees), Railways issued the order already on April 24, 2026. For both employees and pensioners, the hike is effective retroactively from January 1, 2026. The retirees will receive the increased amount, including the arrears since January 1, 2026, in the upcoming salary cycle. As DR is based on the basic pay, the hike will be done accordingly. For instance, if a retiree receives a basic pay of Rs 50,000, the current DR is Rs 29,000 (Rs 50,000 X 58 per cent), which will now increase to Rs 30,000, indicating an increase of Rs 1,000 per month.

Gramin Dak Sevaks (GDS) DA Hike

Similarly, the Department of Posts also issued the official order to increase its employees’ dearness allowance (DA) by 2 per cent on April 29, 2026. “The Gramin Dak Sevaks (GDS) have also become entitled to the payment of Dearness Allowances on basic TRCA at the same rates as applicable to Central Government Employees with effect from 01.01.2026. It has, therefore, been decided that the Dearness Allowance payable to the Gramin Dak Sevaks shall be at the same rates as payable to Central Government Employees, i.e. at the rate of 60 per cent with effect from the 1 January, 2026, it reads.

The central government typically hikes the DA and DR every six months for central government employees, which usually works as the base, and the state usually offers a similar hike to the state government employees.  

According to the PIB release, the hike in DA and DR would cost the exchequer approximately Rs 6,791.24 crore every year.

While Prime Minister Narendra Modi urged the Indian citizens to spend less on fuel, edible oil, and avoid purchasing gold, among others, due to ongoing geopolitical tension and affected crude oil supply, and falling rupee, the hike in DA and DR for employees and pensioners provides the much-needed purchasing power.  

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