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News India Live, Digital Desk: Government Policy Changes: Under the new rules, pensioners will no longer eligible for the benefit of Pay Commission in future. Reports states that this includes an increase in dearness allowance (DA) or the benefit of the upcoming 8th Pay Commission. Parliament has approved the Finance Act 2025, which will lead to major changes in the pension structure of retired government employees. According to the new law, pensioners will no longer eligible for the benefit of Pay Commission in future.
The law states that the center The government will no longer be responsible for management of financial benefits of retired employees. Accordingly, the benefit of increase in the Pay Commission and the dearness allowance will not be available to those who have already retired from service.
Any amendment in pension or dearness allowance (DA) will be decided at the discretion of the government. Such a decision will be effective from the date for him. No arrears will be paid and pensioners cannot legally challenge these rules.
Currently the pension is regulated under the Pension Act 1977. Many retired employees get benefits under it. But since this law does not apply to pensioners of all categories, the matter was first taken to the Supreme Court.
Justice YV on 17 September 1982 The Constitution Bench of five judges headed by Chandrachud ruled that all retired pensioners should be treated equally, irrespective of their retirement date.
This decision ensured pension equal to 50% of the final salary as well as other related benefits. This decision was considered a milestone. Since then, many people celebrate 17 September as ‘Pensioners Day’.
However, the Finance Act 2025 will change this structure. It is clear from this that the increase in 8th Pay Commission and dearness allowance will not apply to the existing pensioners. Pension Act 1972 is no longer applicable.