Good News! Bank Pensioners to Get Ad-Hoc Dearness Relief for August 2025 to January 2026

Good News! Bank Pensioners to Get Ad-Hoc Dearness Relief for August 2025 to January 2026

Indian Banks’ Association (IBA) has announced Dearness Relief (DR) payable to bank pensioners and family pensioners for the period from August 2025 to January 2026. This applies specifically to banks that have not yet implemented DR neutralization for those who retired before November 2002.

In a circular vide Circular No.CIR/HR&IR/D/G2/2025-26/2387 dated August 1, 2025, the Indian Banks’ Association (IBA) stated that such banks can continue to pay DR on an ad-hoc basis until amendments to pension regulations are completed.

Also ReaD:- Union Government Responds to 5-Day Banking Week Proposal in Lok Sabha

The DR rates have been detailed based on different retirement periods, starting from those who retired as early as January 1986 to those who retired after November 2022.

The applicable DR rates are calculated using the average Consumer Price Index (CPI) of 9480.00 for the quarter ending June 2025. For example, pensioners who retired after November 2017 will receive DR at 54.74% of their basic pension, while those retired after November 2022 will receive 21.13%.

These interim payments aim to ensure continuity in pensioner benefits while the formal regulatory changes are underway.