In a relief for retired central government employees, the Union government has clarified that the Finance Act 2025 will not stop Dearness Allowance (DA) hikes or 8th Pay Commission benefits for pensioners.
A message circulating on social media recently claimed that retirees would lose post-retirement benefits like DA hikes and Pay Commission revisions. The claim quickly went viral, especially on WhatsApp. However, the Press Information Bureau (PIB) fact-check unit has confirmed that this information is false.
In a post on X, the PIB said, “A message circulating on WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025. The claim is FAKE!”
The PIB added that the only change in the CCS (Pension) Rules, 2021, is Rule 37(29C), which affects retired employees of public sector undertakings (PSUs) dismissed for misconduct. Under this amendment, PSU employees who are dismissed after absorption for misconduct will lose their retirement benefits. The amended rule states: “The dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also.”
The viral claim also incorrectly suggested that the Finance Act 2025 overrides a 1982 Supreme Court judgment on pension rights. Experts say the confusion may have arisen because the Terms of Reference (ToR) of the 8th Pay Commission do not explicitly mention pension revision, unlike the 7th Pay Commission. However, the government has not ruled out pension benefits, and final details will only be known when the Commission submits its recommendations.
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Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
