This 7th Pay commission will untangle the affairs of pension alterations for the central government retirees in the year 2025. The latest updates here include announcements for raising Dearness Relief (DR), enhancing digital verification, and framing further discussions on the upcoming 8th Pay Commission.
Dearness Relief (DR) Climb Points in 2025
In January 2025, the Department of Pension & Pensioners’ Welfare (Do PPW) raised DR for central government pensioners from 53 percent to 55 percent of the basic pension with effect from 1 January 2025. This was done to bridge the gap between the falling value of currency and the basic pensions and applies both to civilian pensioners and the armed forces retirees as well as family pensioners.
Thereafter, in April 2025, the government approved a 12% increase in Dearness Allowance (DA) for the employees from 50 % to 62% of the basic pay effective from July 1, 2025. The increased amount of DR would also apply to pensioners based on the same 62% increase, further impacting increases in monthly pensions from ₹ 2,160 to ₹ 17,304, depending on the pension amount.
Digital Life Certificate Submission
Pensioners can now submit their life certificates via video calls and mobile apps, thus reducing the necessity for visiting the banks or pension distribution counters. This is a great relief, especially for the old and new-age consumers living far off and not possessing an identity card.
Anticipation of the 8th Pay Commission
Though the recommendations of the 7th Pay Commission are still in effect, the establishment of the 8th Pay Commission has been announced by the government, which will apply from January 1, 2026. However, pensioners who retire before this date would not be entitled to benefits from this new commission. This has put more than 60 lakh pensioners in doubt over their hopes of pension enhancement.
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