Clarification on 8th Pay Commission : No Withdrawal of Post-Retirement Benefits Under Finance Act 2025
The latest news regarding the 8th Pay Commission addresses a fake news claim circulating on WhatsApp, which alleges that the Central Government has withdrawn post-retirement benefits, such as dearness allowance (DA) hikes and Central Pay Commission (CPC) provisions, for retired employees under the Finance Act, 2025. The government has officially stated that these claims are unfounded.
On November 13, 2025, PIB Factcheck, the Central Government’s fact-checking agency, clarified that there has been no change regarding post-retirement benefits for government employees as stated in a viral message. The post specifically countered the rumor, stating, “Will retired Govt employees stop getting DA hikes & Pay Commission benefits under the Finance Act 2025? The claim is #FAKE!”
While there have been no alterations to benefits for retired government employees, it is important to note that retirement benefits can now be forfeited if an employee is dismissed for misconduct. The amendment to Rule 37 of the CCS (Pension) Rules, 2021 clarifies that for absorbed Public Sector Undertaking (PSU) employees, any dismissal due to misconduct will lead to the forfeiture of retirement benefits.
Earlier this year, the PIB released a statement related to changes in Rule 37, indicating that this amendment was made in consultation with multiple government departments, following a Supreme Court ruling from January 2023 related to misconduct.
Therefore, while retirement benefits remain intact for most government retirees, those dismissed for misconduct will face forfeiture of such benefits. For accurate updates and changes, retired employees are encouraged to refer to official government releases and fact-check sources.
Central Government’s official fact-checker, PIB Factcheck, on Thursday, November 13, 2025, clarified that the claim is fake.
“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 A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025. The claim is #FAKE!,” PIB Fact Check said in a post on X (formerly Twitter).
Now, the retirement benefits of an employee can be forfeited if s/he is dismissed for misconduct.
“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,” PIB Factcheck said.
Earlier in May this year, PIB had issued a press release informing employees about the amendment to Rule 37 of CCS (Pension) Rules 2025.
“Department of Pension and Pensioners’ Welfare in consultation with the Department of Expenditure, Ministry of Finance, Department of Personnel & Training, Department of Legal Affairs, Legislative Department and Comptroller & Auditor General has brought out an amendment in Rule 37 (29)(c) of CCS (Pension) Rules, 2021,” the release said.
It further said that the amended Rule 37(29C) is as follows:
“… 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”
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