Pensioners to lose DA and pay benefits? Govt fact-checks viral message

Only a specific PSU-related rule was amended; regular pensioners face no impact, says PIB's fact-check team

A WhatsApp message has caused anxiety among central government pensioners by claiming that the Centre has withdrawn their Dearness Allowance (DA) increases and future Pay Commission benefits under the Finance Act, 2025. The claim has spread widely, but it is completely false, according to the government’s fact-checking unit.

 

What the fake message said?

The viral forward suggests that all retired government employees will no longer receive:

 

·  DA (or Dearness Relief for pensioners)

 

·  Pay Commission revisions

 

·  Other post-retirement benefits

 

However, the Press Information Bureau’s (PIB) fact-check team has confirmed that no such decision has been taken. The message misrepresents a recent amendment to pension rules meant for a very specific group.

 

What has the government actually changed?

The truth relates to an amendment to Rule 37 of the Central Civil Services (Pension) Rules, 2021. The change affects only PSU employees who were once central government employees and later absorbed into a public sector undertaking.

 

Under the updated Rule 37(29C):

 

·  If such an absorbed PSU employee is dismissed for misconduct, their retirement benefits for their earlier government service can also be forfeited.

 

·  The PSU’s decision can be reviewed by the ministry that supervises that undertaking.

 

This amendment follows a Supreme Court direction issued in January 2023. It does not apply to regular central government pensioners. 

 

DA vs DR: What pensioners really receive?

The viral message also mixes up key terms. Current government employees receive Dearness Allowance (DA), while pensioners receive Dearness Relief (DR), both designed to neutralise the impact of inflation.

 

DR is usually revised twice a year, in:

 

·  March (for the January–June cycle), and

 

·  September (for the July–December cycle)

 

Pension for the months before revision is calculated on the previous DR rate. 

 

So, should pensioners worry?

No. The Centre has not withdrawn DR hikes, not frozen Pay Commission-linked benefits, and not amended rules for general pensioners.

 

Only a narrow category of absorbed PSU employees dismissed for misconduct may face forfeiture of past government-service pension, and even that decision is subject to ministerial review.

 

For all other pensioners, DR increases and Pay Commission entitlements remain unchanged.