The Central Government has dismissed a viral social media message claiming that retired government employees will stop receiving dearness allowance or DA hikes and future pay commission benefits under the Finance Act 2025.
This was a widely circulated claim that is fake, and the government has made no change to the post-retirement benefits for the vast majority of its pensioners.
The only recent change pertains to a very specific set of retirees under the CCS (Pension) Rules, 2021. The Department of Pension and Pensioners’ Welfare, in consultation with the Ministry of Finance and other departments, amended Rule 37(29C).
This amendment does not affect general retirement benefits, DA hikes, or Pay Commission revisions for regular pensioners. Instead, it applied to those in a specific scenario.
The actual amendment clarifies that for a former government employee who was absorbed into a PSU, their retirement benefits will be forfeited only if they are subsequently dismissed or removed from service by the PSU due to misconduct.