The Government of Andhra Pradesh has announced a major update for all state pensioners and family pensioners. Through G.O.Ms.No. 61, dated 19–20 October 2025, the Finance Department has revised the Dearness Relief (DR) from 33.67% to 37.31% on the basic pension, effective from 1 January 2024 .
This change ensures that retired employees receive additional financial support to counter rising living costs.
What Is Dearness Relief (DR)?
Dearness Relief (DR) is a cost-of-living adjustment added to pensions to offset inflation. It works much like Dearness Allowance (DA) for current employees. The DR percentage is applied on the basic pension amount, ensuring that retired employees continue to maintain their purchasing power.
Key Features of the New Order
How to Calculate DR Amount
The formula for revising your monthly pension is simple:\text{Total Pension = Basic Pension × (1 + DR % / 100)}or Total Pension = Basic Pension × 1.3731or Total Pension = Basic Pension × 1.3731
For example, if your basic pension is ₹25,000:
- DR @ 37.31% = ₹ 9,327.50
- Total Monthly Pension = ₹ 34,327.50
Thus, your pension will increase by ₹ 910 compared to the old rate of 33.67%.
Arrears Calculation Example
The arrears correspond to the 21 months between January 2024 and September 2025.Monthly Difference = Basic Pension × (3.64 / 100)Monthly Difference = Basic Pension × (3.64 / 100)Total Arrears = Monthly Difference × 21Total Arrears = Monthly Difference × 21
If your basic pension is ₹25,000:
- Monthly DR increase = ₹ 910
- Total Arrears = ₹ 19,110
- Payable in 12 equal parts during FY 2027–28.
Categories Covered
The government clarified that this enhancement applies to:
- All government service pensioners and family pensioners.
- Teaching and non‑teaching pensioners from aided and local‑body institutions.
- Pensioners of universities and corporations (the cost to be met from respective block grants or funds).
Treasury Officers and PPOs must credit the enhanced DR automatically without requiring fresh authorization from the Accountant General (A&E), Vijayawada .
Government Implementation Highlights
- The CFMS software will be updated by the APCFSS to automatically generate DR arrear statements.
- The expenditure distribution will follow the Andhra Pradesh Accounts Code Appendix III‑B (Incidence of Pension Rules).
- University and municipal pension payments will draw from their respective funds and block grants.
- The full G.O. text is available on the official portal at goir.ap.gov.in . in Finance Go.Ms. 61 of HR III-pension,GPF dated 10th october 2025.
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