PIB Clarifies Misleading Claims About Retirement Benefits Under Finance Act 2025

The Press Information Bureau (PIB) has refuted a viral post claiming that retired government employees would lose their Dearness Allowance hikes and Pay Commission benefits under the Finance Act 2025. This misinformation, which circulated widely on social media, raised concerns among employees. PIB clarified that the claims are false and explained the relevant rules regarding retirement benefits. The bureau emphasized the importance of verifying such information to avoid confusion and misinformation.

By Narendra Chaudhary Jun 2, 2025, 21:15 IST

PIB Addresses Viral Misinformation

On Monday, the Press Information Bureau (PIB) issued a statement to debunk a misleading post regarding retirement benefits that had gained traction on social media. The post claimed that retired government employees would no longer receive Dearness Allowance (DA) increases and Pay Commission benefits due to the Finance Act 2025.

Understanding DA Hike

A DA hike refers to an increase in the Dearness Allowance provided to employees and pensioners. This adjustment is designed to help maintain their purchasing power amid inflation, acting as a cost-of-living adjustment. Essentially, it serves as an additional component of pay that influences pension amounts and enhances take-home earnings.

Pay Commission Benefits Explained

Commission benefits, often termed variable pay, are earnings based on a percentage of the sales or revenue generated by an employee. This system can offer various advantages to both businesses and employees, including enhanced motivation, flexibility, and the potential for increased earnings.

The viral post regarding the Finance Act 2025 raised alarms among government employees, prompting the PIB fact-check team to investigate.

PIB clarified on social media that the claim about the removal of retirement benefits is false. They also elaborated on the relevant rule, stating, "Rule 37 of the CCS (Pension) Rules, 2021 has been amended to indicate that if a PSU employee is dismissed for misconduct, their retirement benefits will be forfeited."

For further clarification, PIB provided a link to their official statement.