The Ministry of Railways has announced an increase in Dearness Relief (DR) for railway pensioners and family pensioners from 58% to 60% of the basic pension/family pension with effect from January 1, 2026, as per a Ministry of Railways’ order dated May 7, 2026.
In an Office Memorandum (OM) by the Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, Public Grievances & Pensions, issued on April 24, 2026, also said that the DR hike order will apply on Railways also.
What will be the pension hike for Railway pensioners?Railway pensioners and family pensioners will see a rise in their monthly pension from January 1, 2026. For example, a pensioner receiving a monthly basic pension of Rs 10,000 will now get Rs 16,000 instead of Rs 15,800, resulting in a monthly increase of Rs 200. Similarly, pensioners with a basic pension of Rs 50,000 will receive an additional Rs 1,000 per month after the revised DR rate came into effect. The increase will vary depending on the basic pension amount of a pensioner.
Monthly increase in Railway pensioners’ pensions after DR hike
| Basic pension | Pension at 58% DA | Pension at 60% DA | Monthly hike |
| Rs 10,000 | Rs 15,800 | Rs 16,000 | Rs 200 |
| Rs 20,000 | Rs 31,600 | Rs 32,000 | Rs 400 |
| Rs 30,000 | Rs 47,400 | Rs 48,000 | Rs 600 |
| Rs 40,000 | Rs 63,200 | Rs 64,000 | Rs 800 |
| Rs 50,000 | Rs 79,000 | Rs 80,000 | Rs 1,000 |
| Rs 60,000 | Rs 94,800 | Rs 96,000 | Rs 1,200 |
| Rs 70,000 | Rs 110,600 | Rs 112,000 | Rs 1,400 |
On April 18, Prime Minister Narendra Modi approved an additional instalment of DA and DR for central government employees and pensioners, respectively, w.e.f. January 1, 2026, representing an increase of 2% over the existing rate of 58% of the basic pay/pension to compensate against the price rise.
Increases in DA and DR would have a cumulative annual impact on the exchequer of Rs 6791.24 crore, as per a Ministry of Finance release.
About 50.46 lakh Central Government workers and 68.27 lakh retirees will gain from this, the release further said.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, as per a Ministry of Finance release as on April 18, 2026.
