Fact Check: Will retired govt employees stop getting DA hikes, Pay Commission benefits? Know the truth here

Days after the Union Cabinet approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), a message is doing the rounds on social media, claiming that the retired government employees will stop getting Dearness allowance (DA) hikes and Pay Commission benefits under the Finance Act 2025.

A message circulating on WhatsApp claims that the Central government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025. "As per the new rules, pensioners will no longer be eligible for Dearness Allowance (DA) hikes or future Pay Commission benefits, including those from the upcoming 8th Pay Commission. The Finance Act 2025 states that the government will not be responsible for maintaining the financial benefits of retired employees. This means that Pay Commission benefits and DA hikes will not apply to those who have already retired," the message reads.

Fact Check

The claim in the viral message is FALSE. The government has not made any major policy change affecting lakhs of pensioners. The fact-check unit of the government agency PIB has also refuted such claims and calls them false. It added that rule 37 of the CCS (Pension) Rules, 2021, has been amended to state that if an absorbed PSU employee is dismissed for misconduct, their retirement benefits will be forfeited.

READ | Gautam Adani sees BIG jump in net worth after Bihar exit poll, it is now Rs...; only behind Mukesh Ambani

Amendment of Rule 37 of CCS(Pension) Rules, 2021

The amended Rule 37(29C) 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 and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking."

"For the purpose of this Rule, the relevant provisions of Rule 7 and 8 read with Rule 41 and Rule 44(5)(a) &(b) would be applicable analogous as is applicable to a Government servant under these Rules."

Will retired Govt employees stop getting DA hikes & Pay Commission benefits under the Finance Act 202

A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired… pic.twitter.com/E2mCRMPObO

— PIB Fact Check (@PIBFactCheck) November 13, 2025