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 retired government employees will stop getting Merit 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A message circulating on WhatsApp claims that the Central government has withdrawn post-retirement benefits such as DA increments and Pay Commission revisions for retired employees under the Finance Act, 2025. “Under the new rules, retirees will no longer be eligible for Appreciative Allowance (DA) increments or future Pay Commission benefits, including those from the upcoming 8th Pay Commission. The Finance Bill 2025 states that the government will not be responsible for maintaining the financial benefits of retired employees. This means that Pay Commission benefits and the DA’s increments will not apply to those who are already retired,” the message said.

Accuracy Check

The claim in the viral message is FALSE. The government has not made any significant policy changes affecting thousands of retirees. The fact-checking unit of the state agency PIB also denied such allegations and said they were false. He added that rule 37 of the CCS (Pension) Rules 2021 has been amended to state that if a retired PSU employee is dismissed for misconduct, his pension rights will be forfeited.

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Amendment to Article 37 of CCS(Pension) Rules, 2021

Amended Rule 37(29C) states: “… the dismissal or dismissal of any employee for any subsequent misconduct after his involvement in a public sector undertaking shall also result in the loss of retirement benefits in respect of service rendered under the Government and in the event of the individual being dismissed, dismissed or dismissed, the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking.”

“For the purposes of this Rule, the relevant provisions of Rules 7 and 8 read with Rule 41 and Rule 44(5)(a) &(b) shall apply in a manner similar to that applied to a Government servant under these Rules.”

Will retired Government employees stop receiving DA raises and Pay Commission benefits under Finance Bill 202?

A message floating around #WhatsApp He claims that the Central Government has withdrawn post-retirement benefits for retirees such as DA increments and Pay Commission revisions… pic.twitter.com/E2mCRMPObO

— PIB FactCheck (@PIBFactCheck) November 13, 2025