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Life Insurance & Pension Plan

No Change In DA Hike Or Salary Compensation For Retired Government Employees, Clarifies PIB

PIB Fact Check has clarified that no policy change has been announced regarding hikes in dearness allowance or pay commission benefits to retired central government employees

No Change In DA Hike Or Salary Compensation
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Summary

Summary of this article

  • PIB Fact Check has denied claims on pension benefit withdrawal

  • DA hikes and pay commission benefits continue

  • Rule amendment applies only to dismissed PSU employees

A viral WhatsApp message has claimed that retired central government employees would not be entitled to an increase in dearness allowance (DA) or any benefits of the Pay Commission under the Finance Act, 2025. The claim has been rejected by PIB Fact Check. In a post shared on their official X (formerly Twitter) handle, they clarified that it is fake information, and that the Government of India has taken no such decision.

The clarification from PIB comes after the message caused confusion and raised concerns among pensioners, most of whom feared a rollback of long-standing post-retirement benefits.

What The Viral Message Claims

The viral message also cited past Supreme Court decisions, stating that revised regulations had nullified prior pension privileges for seniors.

The X post by PIB Fact Check denies both claims. There is no change in the policy with regard to hikes in DA or any matters related to the Pay Commission for retired central government employees.

The confusion seems to have arisen because of a misreading of an amendment to the Central Civil Services Pension Rules, 2021. The scope of the amendment is extremely limited and does not relate to pensioners at large.

This new rule applies to those public servants who were absorbed into public sector undertakings and eventually got dismissed or relieved from duty. Their pensions, accrued for services as public servants, may be forfeited in that case.

This does not apply to other retirees, nor does it modify any existing practice for calculating pensions, revising the DA, or any Pay Commission-related benefits.

This amendment to Rule 37 was made vide an order dated January 9, 2022, passed by the Supreme Court in the case of Suraj Pratap Singh vs. CMD BSNL and others. The court had examined the issue of pension benefits in cases where absorbed PSU employees were dismissed for misconduct after absorption. Hence, in compliance with the above judgment, the government revised the regulations to clarify the above. 

PIB has further clarified that the revised regulation will be narrowly and conditionally applied. It is not to be generalised that the stipend benefit under the pension is completely withdrawn. It is recommended that pensioners rely on information provided through official announcements and validated resources of the government, rather than news circulated on social media.

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