🧓 PENSIONERS’ DIGEST: JAN 2026
60% DR Hike | OROP 3 Arrears | New Gratuity Order
By Admin | January 7, 2026 | Topic: Defense & Railway Pension
Pension News: 60% DR Hike Confirmed; Railway Board Issues New Gratuity & PPO Orders
NEW DELHI: While serving employees are discussing the 8th Pay Commission, two major developments have occurred for Defense (OROP) and Railway Pensioners this week. The Railway Board has clarified rules on Gratuity, and the DR rates have hit a new high.
1. Good News: Dearness Relief (DR) Hits 60%
Based on the AICPI-IW data released on Dec 31, 2025, the Dearness Relief for pensioners has officially increased from 58% to 60% effective January 1, 2026.
- ✅ Impact: A pensioner with a basic pension of ₹30,000 will see a monthly increase of roughly ₹600.
- ✅ Arrears: The increased amount will be paid with the March 2026 pension, including arrears for Jan & Feb.
- ✅ Note: This applies to both Civil and Defense pensioners.
2. Railway Board: New Gratuity Order (Jan 6, 2026)
In a crucial circular dated January 6, 2026, the Railway Board (aligned with DoPPW) has issued clarifications regarding the limitation on Gratuity under NPS.
If a Railway employee has drawn separate gratuity for prior Military Service, the total gratuity (Civil + Military) cannot exceed the statutory limit (currently ₹25 Lakhs, expected to rise to ₹35 Lakhs under 8th CPC).
PPO Return Order (Jan 5): Another order directs CPPCs to return Pension Payment Orders (PPOs) to CPAO immediately after the demise of a pensioner to prevent overpayment.
3. OROP 3 Arrears & SPARSH
The One Rank One Pension (OROP-3) revision, effective from July 1, 2024, is still in the disbursement phase for many. Defense pensioners are advised to check their SPARSH accounts for the latest installment status.
SPARSH Alert: The window for Digital Life Certificate (DLC) submission for those who missed the November deadline is closing soon. Ensure your identification is complete to avoid pension stoppage in February 2026.