8th Pay Commission: Will Pensioners Stop Receiving DA? Government Clarifies Viral Claim

A recent message circulating rapidly on WhatsApp has created confusion and concern among central government employees and pensioners. The viral claim suggests that with the introduction of the Finance Act 2025, the government may stop providing Dearness Allowance (DA) hikes and other benefits linked to the 8th Pay Commission. The message spread widely across social media, raising questions about whether pensioners will continue receiving DA in the future.

However, the Press Information Bureau (PIB) Fact Check team has categorically denied all such claims. According to PIB, the message is completely false, misleading and based on misinterpretation of rules, not on any official government policy.

How Did This Rumour Start?

The confusion appears to have stemmed from a misreading of an update under the CCS (Pension) Rules 2021, specifically Rule 37(29)(c).
This rule states:

• If a central government employee is absorbed into a Public Sector Undertaking (PSU)

• And is later terminated from that PSU due to serious misconduct

• Then their earlier government-service-based pension benefits can also be withdrawn.

This provision applies only to employees who shift to PSUs and are later dismissed for misconduct.
It does not apply to:

• Regular central government pensioners

• Employees still serving in government roles

• Any DA or Pay Commission–related benefit

PIB has clarified that some people misunderstood this rule, leading to the inaccurate claim that DA and Pay Commission perks may be discontinued. The agency reiterated that the rules have no impact on existing or future DA hikes for pensioners or employees.

PIB’s Official Statement

PIB Fact Check, through its post on X (formerly Twitter), stated that the viral WhatsApp message is baseless. The government has not stopped DA hikes, nor has it removed or suspended Pay Commission benefits.

The clarification is meant to eliminate panic among employees and pensioners who rely on DA to cope with inflation. PIB has urged citizens to verify such claims through official channels instead of relying on unverified forwards.

What’s New in the 8th Pay Commission?

Along with addressing the rumours, the government has recently shared a major update regarding the 8th Pay Commission (8th CPC). The Terms of Reference (ToR) for the commission have now been officially released. This means the 8th CPC has formally begun its work.

Who Is Leading the 8th Pay Commission?

The commission is chaired by Justice Ranjana Desai, and includes a total of three members.

What Will the Commission Examine?

The 8th CPC will:

• Review the current salary structure for central government employees

• Study allowances, pensions and service conditions

• Evaluate pay parity between government staff and employees in private or PSU sectors

• Assess financial impact on the central government

• Review implications for state governments, many of which follow central Pay Commission recommendations

• Consider the country's economic conditions and fiscal discipline while preparing new pay scales

The government has advised the commission to balance salary enhancements with economic sustainability and budget limitations.

When Will the Recommendations Be Released?

The 8th Pay Commission has been given 18 months to complete its report.
This means the final recommendations are expected by April 2027.

• The commission may submit interim reports during this period

• After receiving the final report, the government will review and decide on its implementation

• If timelines remain on track, central government employees and pensioners may receive a revised salary and pension structure after 2027

Bottom Line: DA Will Continue

Despite the rumours, the government has not stopped DA benefits for pensioners or employees.
There is no change in the policy of granting periodic DA hikes, and Pay Commission advantages remain fully intact.

The viral message was simply a result of confusion and false interpretation of pension rules.

If you’d like, I can also create: