Govt Rebutts Fake Claims On Withdrawal Of Post-retirement Benefits Under Finance Act

Information about the Retirement scheme on social media is being circulated, claiming that post-retirement benefits, including dearness allowance (DA) hikes and pay commission revision, will be withdrawn under the Finance Act 2025.

The Central government on Monday rebutted fake information, saying, 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.

“A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025.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 Fact Check, a fact-checking arm of Press Information Bureau, posted on X social media platform.

No Plan To Merge Basic Pay And Dearness Allowance

Earlier, the Ministry of Finance informed that the government is not considering merging the dearness allowance (DA) of central government employees with the basic pay.

With increasing speculation over the 8th Central Pay Commission, the Centre has clarified that no proposal is at present under consideration to give any interim relief to the central government employees. While replying to a written query in the Lok Sabha, Minister of State for Finance, Pankaj Chaudhary, said the Centre is not examining any plan to merge the existing dearness allowance with basic pay.

“No proposal regarding the merger of the existing dearness allowance with the basic is under consideration with the government at present,” he stated.

Chaudhary was responding to questions that pointed out that central government employees and pensioners have been battling the highest levels of inflation seen in three decades, arguing that DA and DR revisions are not in sync with the current retail inflation.

Employee unions have also been demanding the merger of 50 per cent DA with basic pay, all the more so after the government announced the terms of reference for the 8th CPC earlier in November.

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