8th Pay Commission: No freeze on pensioners' DA and pay commission, rules changed for PSU employees

Published: 14 November 2025

The central government has officially dismissed a series of misleading social media claims suggesting that retired government employees would no longer receive benefits such as Dearness Allowance (DA) hikes or future pay commission revisions. Over the past few days, several viral posts claimed that pensioners’ DA increases had been discontinued and that no upcoming pay commission would apply to them. Authorities have now firmly clarified that these assertions are completely false and do not reflect any policy changes.

According to the Ministry of Finance and the Department of Pension and Pensioners’ Welfare, the majority of pensioners will continue receiving all their entitlements exactly as before. No decision has been taken to halt DA revisions, nor has the government withdrawn pay commission-related benefits for retired employees. The ministries described the viral claims as entirely fabricated, urging citizens to rely only on official notifications.

The misunderstanding appears to stem from an amendment made recently to Rule 37(29C) of the CCS (Pension) Rules, 2021. However, officials have emphasized that this amendment applies only to a specific category of individuals—those who left government service to join Public Sector Undertakings (PSUs).

Under the revised provision, if a former government employee who has transitioned to a PSU is dismissed or removed from that PSU due to misconduct, their pensionary benefits from their earlier government service may also be forfeited. The intent behind this rule is to ensure accountability for individuals who misuse their position after joining public sector enterprises.

Most importantly, the rule does not impact ordinary pensioners in any way. Regular retirees who concluded their government service through normal procedures face no changes in their benefits or entitlements.

A widely circulated message also alleged that the Finance Act 2025 nullified a 1982 Supreme Court ruling that upholds certain pension rights for retired employees. This, too, has been categorically denied. The government’s official fact-checking unit reviewed the viral images and statements and classified them as fake.

The false message claimed that the government had decided to stop paying pensions altogether, an assertion that has no basis in any legal amendment, government order, or policy revision. Authorities reiterated that pensioners will continue receiving DA hikes and the benefits of existing and future pay commissions as usual.

In a development welcomed by employees and retirees alike, the government recently approved the framework for the upcoming 8th Pay Commission. The commission has been allotted a period of 18 months to complete its evaluation and submit its recommendations.

This move signals that the government is actively working to streamline future adjustments in pay scales and pension structures. The approval also reassures pensioners that the system of periodic revisions—central to ensuring their financial security—remains fully intact.

The spread of unverified information had caused considerable anxiety among the pensioner community, especially those depending on DA increments to offset rising living costs. Many retirees were concerned that their long-standing benefits were being withdrawn without proper announcement.

The latest official clarification provides much-needed relief by confirming that there have been no changes to the entitlements of the general pensioner population. Except for the narrowly defined group of former government employees now serving in PSUs, no individual faces any alteration in benefits.

Going forward, the government has urged citizens, particularly pensioners, to verify information through reliable sources rather than relying on unconfirmed social media posts. With the 8th Pay Commission now underway, future revisions are expected to bring additional support to both employees and retirees.