Amid growing speculation around the 8th Pay Commission, the central government has issued a clear clarification on a viral claim suggesting that pensioners would stop receiving Dearness Allowance (DA) hikes under the Finance Act 2025.
The government categorically dismissed the claim as false and misleading, urging citizens to avoid believing unverified messages circulating on social media platforms, particularly WhatsApp.
In an official post shared by PIB Fact Check on X, the Centre confirmed that post-retirement benefits such as DA hikes and pay commission revisions remain intact for pensioners.
What Triggered the Confusion?
A message widely circulated on WhatsApp alleged that the Finance Act 2025 had withdrawn post-retirement benefits for central government pensioners, including DA increases and pay commission-linked revisions.
Responding to the viral message, the government stated:
“A message circulating on WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025. This claim is fake.”
Will Pensioners Continue to Get DA Hikes?
Yes, Except in Cases of Misconduct
The government clarified that pensioners will continue to receive DA hikes and pay commission benefits, and these will only be stopped in exceptional circumstances.
According to the Centre, retirement benefits can be forfeited only if a government employee is dismissed or removed from service on grounds of misconduct.
This provision is part of an amendment to Rule 37 of the CCS (Pension) Rules, 2021, which applies specifically to absorbed PSU employees.
Official Notification Issued in May 2025
The government also referred to an official notification issued in May 2025, which clearly states that retirement benefits remain protected and can be withdrawn only in cases involving proven misconduct leading to dismissal.
There is no blanket withdrawal of DA or pension-related benefits under the Finance Act 2025.
Why Dearness Allowance Is Crucial for Pensioners
Dearness Allowance plays a critical role in protecting government employees and pensioners from the rising cost of living.
Key Purpose of DA
- Offsets inflation
- Maintains purchasing power
- Provides financial stability to retirees
DA rates are reviewed twice a year, typically in January and July, based on inflation data.
Recent DA Hike Approved
On 1 October 2025, the Union Cabinet approved a 3% DA hike for central government employees and pensioners ahead of the festive season.
This increase was implemented under the framework of the 7th Central Pay Commission, and pensioners also benefited from the revision.
What the 8th Pay Commission Means Going Forward
While the 8th Pay Commission is expected to re-evaluate salaries, allowances, and pensions in the coming years, the government has made it clear that existing DA benefits will not be abruptly discontinued.
Any future changes will follow due process, official notifications, and transparent policy decisions.
The government’s clarification puts to rest fears surrounding the Finance Act 2025 and the 8th Pay Commission. Pensioners can remain assured that Dearness Allowance and pay-related benefits are secure, barring rare disciplinary cases.
Authorities have once again urged people to verify information through official channels and avoid falling for misleading social media messages related to matters of public interest.