The central government has debunked a fake message circulating across social media platforms, particularly WhatsApp, which claimed that the central government has withdrawn post-retirement benefits, like dearness allowance (DA) hikes and Pay Commission revisions for retired employees under the Finance Act.
The government posted on X, formerly Twitter, through its official social media handle, @PIBFactCheck, and clarified that “The claim in #FAKE!”
The Centre further clarified 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 will be forfeited.
The amended Rule 37(29C), as per the official release on PIB dated May 27, 2025, 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."
The government has time and again reiterated that citizens should verify information circulating on social media through credible sources.
It can be mentioned here that the Centre approved the 8th Pay Commission’s Terms of Reference (ToR) — an official rulebook and scope of work for the commission — on November 3, 2025, which will to study and make recommendations on the basic pay structure, pensions, allowances (including dearness allowance), and other key benefits for central government employees and pensioners.
Here’s the latest update on the 8th Central Pay Commission.
So far, the government has clarified that there is no proposal yet to merge DA with the basic pay. However, as the 7th CPC nears its end this year, the Centre is yet to make its stance clear over the continuation of DA under the existing formula or whether it pauses until the 8th CPC recommendations are formally adopted.
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