8th Pay Commission: Confused, Whether Govt Employees Will Not Get DA Hikes & 8CPC Benefits After Retirement?

The 8th Pay Commission is the much-awaited development for central government employees and pensioners in 2026. However, the news is misleading retired employees, claiming that they will not receive DA hikes or pay commission benefits after retirement. The government has clarified through its PIB Fact Check portal, debunking the false trend.

8th Pay Commission: No DA Hikes & Pay Commission Benefits?

The FAKE News:

The government revealed through their official press that fake news is circulating on WhatsApp with claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired employees under the Finance Act 2025.

The Fake News said that the Finance Act 2025 states that the government will not be responsible for maintaining the financial benefits of retired employees. This means that Pay Commission benefits and DA hikes will not apply to those who have already retired.

The REAL FACTS:

"No change in post-retirement benefits for retired government employees," said PIB Fact Check. It added, rule 37 of the CCS (Pension) Rules, 2021 has been amended to state that if an absorbed PSU employee is dismissed for misconduct, their retirement benefits will be forfeited.

What Is Rule 37 of CCS(Pension) Rules?

The rule 37 of CCS says, "the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment, the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking."

This means that if you are removed from your services from any PSUs due to misconduct or wrongdoings, then they will not be eligible to get any retirement benefits, including dearness allowance hikes or pay commission benefits.

8th Pay Commission: DA Hikes

In the start of this month, the Ministry of Finance clarified there is no proposal regarding the merger of existing DA with basic salary that will be decided for the 8th CPC. The current DA is 58%, and there was a growing demand to merge it with the basic salary.

The Minister of State in the Ministry Of Finance, Pankaj Chaudhary, replied to the queries in Lok Sabha. In his written reply, Chaudhary said, "No proposal regarding merger of the existing Dearness Allowance with the Basic Pay is under consideration with the Government at present. ln order to adjust the cost of living and to protect Basic Pay Pension from erosion in real value on account of inflation, the rates of DA,/DR are revised periodically every 6 months on the basis of All lndia Consumer Price lndex for lndustrial Workers (AlCPl-lW) released by Labour Bureau, Ministry of Labour and Employment."

This year, in October, the government approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 1, 2025, representing an increase of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rises. Hence, the dearness allowance was hiked to 58%.

8th Pay Commission Implementation Date:

The Cabinet recently announced a temporary body, Terms of Reference (ToR), for the 8th CPC. The ToR is tasked with recommendations for the 8th Pay Commission. They are given an 18-month timeframe to submit the recommendations. ToR may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized.

Hence, 8th Pay Commission is not expected to be implemented on January 1, 2026. The 7th Pay Commission is ending on December 31, 2025. For the past four decades, the timeline to constitute every new pay commission was once in 10 years, and the recommendations get effective after the same cycle. The new pay commission has been effective from January 1st during the 4th to 7th Pay Commission.

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