8th Pay Commission: The fact checking wing of PIB has debunked the claim stating that government employees will stop receiving DA hikes and pay commission benefits under the Finance Act 2025. The agency
has clarified the myth arising over misinterpretation of the new amendment in the Rule 37(29)(c) of CCS (Pension) Rules, 2021, in which if an absorbed PSU employee is dismissed for misconduct, their retirement benefits will be forfeited.
The agency said there there is no blanket withdrawal of these crucial benefits for central government pensioners.
“A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025,” PIB Fact Check wrote in the X post, while debunking the claim.
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 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”
🚨 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A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired… pic.twitter.com/E2mCRMPObO
— PIB Fact Check (@PIBFactCheck) November 13, 2025
8th Pay Commission Update
The Centre has released the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), a three-member committee led by Justice Ranjana Desai.
The ToR outline the scope, objectives, and key tasks of the Pay Commission, such as reviewing the salary structure, allowances, pensions, pay parity, and service conditions of Central government employees and pensioners. It also includes studying the impact on public finances and ensuring fairness and fiscal sustainability in pay revisions. The ToR acts as the foundation document of any pay commission.
According to an official notification, the Commission while making the recommendations will keep in view the following:
i. The economic conditions in the country and the need for fiscal prudence;
ii. The need to ensure that adequate resources are available for developmental expenditure and welfare measures;
iii. The unfunded cost of non-contributory pension schemes;
iv. The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and
v. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.
“The 8th Pay Commission will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised,” according to the notification.
It means the 8th CPC must submit the recommendations by April 2027. However, it is up to the Commission how early it submits the recommendations. After the recommendations are submitted, the government will review and accept and then implement the pay commission to revise salaries of the central government employees.
