Did the Government Really Withdraw Post-Retirement Benefits Under the Finance Act?
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Synopsis
The Central government has debunked recent rumors about the withdrawal of post-retirement benefits under the Finance Act 2025. This article uncovers the truth and clarifies the government's stance on key issues impacting retired employees.
Key Takeaways
- Central government denies false claims
- No withdrawal of post-retirement benefits
- Clarification on DA and basic pay merger
- Response to inflation concerns
- Employee unions advocating for DA revisions
New Delhi, Dec 15 (NationPress) The Central government has officially dismissed the misleading information circulating on social media platforms that post-retirement benefits, including dearness allowance (DA) increases and pay commission revisions, are set to be eliminated under the Finance Act 2025.
A viral message on #WhatsApp falsely claims that the Central Government has rescinded post-retirement benefits such as DA hikes and Pay Commission revisions for retired employees as per the Finance Act 2025. This assertion is FALSE!,” stated PIB Fact Check, a verification unit of the Press Information Bureau, on the X social media platform.
Amendments to Rule 37 of the CCS (Pension) Rules, 2021 specify that if an absorbed PSU employee is terminated for misconduct, their retirement benefits will be forfeited.
Previously, the Ministry of Finance clarified that the government has no plans to merge the dearness allowance (DA) of central government employees with basic pay.
Amid rising speculation regarding the 8th Central Pay Commission, the Centre has reiterated that there are currently no proposals under review to offer any interim relief to central government employees. In response to a written question in the Lok Sabha, Minister of State for Finance, Pankaj Chaudhary, confirmed that the government is not evaluating any plans to merge the current dearness allowance with basic pay.
“There are no proposals concerning the merger of the existing dearness allowance with the basic pay under consideration by the government at this time,” he mentioned.
Chaudhary was addressing inquiries that highlighted that central government employees and pensioners are facing unprecedented inflation levels, asserting that DA and DR adjustments are not aligned with the current retail inflation trends.
Employee unions have also been advocating for the merger of 50 percent DA with basic pay, especially following the government’s announcement regarding the terms of reference for the 8th CPC earlier in November.
Point of View
It's essential to approach this news with clarity and responsibility. The misinformation surrounding post-retirement benefits could cause unnecessary anxiety among retired employees. The government’s timely clarification plays a vital role in maintaining trust and transparency between the administration and its citizens.
NationPress
15/12/2025
Frequently Asked Questions
Are the rumors about withdrawing post-retirement benefits true?
No, the Central government has officially denied these claims, stating that they are false.
What does the Finance Act 2025 entail for retirees?
The Finance Act 2025 does not withdraw post-retirement benefits, including dearness allowance hikes.
Is there any proposal to merge DA with basic pay?
Currently, there are no proposals under consideration to merge dearness allowance with basic pay.
What is the government's stance on inflation affecting DA and DR?
The government acknowledges the inflation concerns but states that no immediate adjustments are planned.
What should retired employees know about their benefits?
Retired employees should remain assured that their benefits, including DA, are secure as per the latest government statement.
