8th Pay Commission: Are DA, Pay Revision Benefits For Retired Govt Employees Being Withdrawn?

8th Pay Commission: A message circulating on WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance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.

PIB Fact Check wing has debunked this claim, saying it a ‘fake’. In the X post, it explained 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 benefit will be forfeited.

It is critical, as the 8th Pay Commission has been constituted to review wages and other benefits of central government staff and pensioners. The effective date for the new CPC is likely January 1, 2026, as the completion of 10-year from the last 7th CPC in 2016.

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”

Thus, the government hasn’t withdrawn any post-retirement benefits for retired government employees. The benefits like DA hikes and pay commission revisions, remain intact for retired employees.