Govt denies claims of DA, pay commission cuts for pensioners; benefits remain intact

Viral claims regarding the withdrawal of Dearness Allowance (DA) and Pay Commission benefits for central government pensioners have caused confusion among retirees and their families. A message widely shared on WhatsApp asserts that the government has ended these benefits under the Finance Act, 2025. However, official sources have dismissed these claims as unfounded, providing clarity on the provisions that continue to support pensioners. The matter has gained traction on social media, prompting an official response to reassure the affected community.

The message falsely indicated that post-retirement benefits, including DA hikes and Pay Commission revisions, have been rescinded for retired government employees. Responding to the concern, the PIB Fact Check team released a statement: "A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025.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 PIB Fact Check team confirms that this claim is fake." This official denial addresses the anxieties of pensioners and underscores the continued provision of these benefits.

The confusion partially stems from misunderstanding the terms used in the message. Dearness Allowance (DA) is granted to serving government employees as a cost-of-living adjustment, whereas pensioners receive Dearness Relief (DR), which serves a similar function but is specifically for retirees. DR adjustments are declared twice annually, in March and September, with interim calculations based on prior rates. This distinction has contributed to the spread of misinformation and highlights the need for accurate terminology.

Authorities clarified that Rule 37 of the CCS (Pension) Rules, 2021, underwent amendments. The PIB Fact Check team explained: “The fact is 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. This is not applicable to all central government pensioners.” This statement confirms that the amendment only impacts a particular subset of retirees and does not represent a blanket withdrawal of benefits.

The amended Rule 37(29C) is highly specific in its application. It 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 the 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 provision is therefore not directed towards the general body of central government pensioners.

The government’s response has been consistent in distinguishing between general pensioners and those absorbed into public sector undertakings (PSUs) who may face forfeiture of benefits if dismissed for misconduct. The revised rule specifically addresses only those employees absorbed into PSUs and later dismissed, leaving the benefits for the broader group of central government pensioners untouched.

Dearness Relief (DR) for pensioners continues to be calculated and distributed in accordance with established cycles. Pensioners can expect DR adjustments in March and September, and for months in between, calculations rely on the previously declared rate.

Both the Ministry of Finance and the PIB Fact Check team have reiterated that the majority of central government pensioners remain unaffected by the recent rule amendment. The official communication aims to dispel misinformation and reinforce that the core benefits, such as DR and Pay Commission revisions, continue to be available for eligible pensioners.