8th Pay Commission: Will retired govt employees lose DA hike and CPC benefits? Here's the truth

8th Pay Commission latest news: A fake news circulating on WhatsApp claims that the Central Government has withdrawn post-retirement benefits like dearness allowance (DA) hike and Central Pay Commission (CPC) under the Finance Act, 2025, for retired employees. However, this is not true. The government has not introduced any such provision under the Finance Act 2025.

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benefits under the Finance Act 2025⁉️A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025.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 FactCheck 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"

According to the release, the amendment in Rule 37 (29)(c) of CCS (Pension) Rules, 2021 was carried out in the light of the Order dated 09.01.2023 of the Supreme Court of India in SLP No.4817/2020 titled as Suraj Pratap Singh Vs CMD BSNL & Ors.