The Central Pension Accounting Office (CPAO) recently released the sixth edition, 2026 of “Scheme for Payment of Pensions to Central Government Civil Pensioners Through Authorised Banks.” This rulebook covers all the rules about how dearness relief is paid to retired central government employees.
Dearness Relief paid automatically with pension
The CPAO rulebook says that the relief is paid automatically alongside pension. “Dearness Relief is granted to the pensioners, including the persons drawing compassionate allowance under Rule 41 of CCS (Pension) 2021 and to family pensioners, at such rates and subject to such conditions as the Central Government may specify from time to time,” the booklet says.
The calculation is done by CPPC. “The calculations of Dearness Relief would be made by CPPC and amount so arrived will be credited to the pensioners /family pensioner’s account by the CPPC without any delay, the rulebook says.
Dearness Relief for reemployed pensioners
The rulebook says that if a pensioner drawing a pension or compassionate allowance under these rules is reemployed under the central government, state government, corporation, banks etc, they “shall not be eligible to draw dearness relief on the pension or compassionate allowance during the period of such re-employment or permanent absorption or immediate absorption.”
Dearness relief will continue to be payable to a pensioner on reemployment or on permanent absorption or immediate absorption if he was not holding a post included or classified as Group-‘A’, his pay was fxed at the minimum of the scale of pay of the post and such minimum of the scale of pay was less than the pay which he was drawing immediately before his retirement or absorption and while fxing his pay in the post in which he was so re-employed or absorbed, the entire amount of pension sanctioned by the central government was ignored.
Submitting employment certificate
The rulebook underlines the rules for pensioners who declare about their employment or re-employment and for those who fail to submit the employment, non-employment and re-employment certificate. “In case a pensioner declares about his employment or re-employment with emoluments which includes dearness allowance, additional dearness allowance, etc., provisions of Rule 52 of CCS (Pension) Rules, 2021 should be enforced. In case the pensioner fails to submit the non-employment or an employment/re-employment certificate on the due date, the elements of dearness relief for December and onward may not be credited by the bank. Pension will continue to be credited,” the rules say.
Dearness relief to family pensioners
The rules say that family pensioners will continue to be eligible to draw dearness relief on family pension during the period of such employment.
“The family pensioner who is employed under the Central or State Government or a Corporation or Company or Body or Bank under them in India or abroad and is eligible to draw a family pension from the Government in respect of a deceased member of his family in accordance with Rule 50 of CCS (Pension) Rules, 2021 and such family pensioner shall continue to be eligible to draw dearness relief on family pension during the period of such employment.”
