This includes newly recruited employees and those retiring after July 30, 2025. However, the government also said that any excess payment will be recovered from employees retiring after October 2025.
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7th Pay Commission: There’s news for central government employees. The government has clarified in a new circular that central government employees will be paid their proportional dress allowance in their July 2025 salary. This includes newly recruited employees and those retiring after July 30, 2025. However, the government also stated that any additional payments will be recovered from employees retiring after October 2025.
What is the circular?
The central government stated in its circular dated September 24, 2025, that as per the new order, the dress allowance has already been paid in July 2025. With a few exceptions, all eligible employees have been paid either at the full rate or at a partial rate depending on their retirement.
What are the dress allowance rates?
The government stated that dress allowance rates increase by 25% for every 50% DA increase. Furthermore, the dress allowance amount is directly credited to employees’ salaries in July every year, and this year, the amount has already been credited. The circular stated that, as per the Ministry of Finance (MoF) directive dated 16.09.2025, officers retiring mid-year will also receive a proportional dress allowance, similar to the proportional pay prescribed for new employees.
The government clarified that employees retiring mid-year will receive a proportional dress allowance starting June 2025. Any overpayments from employees retiring after October 2025 can be recovered from their October 2025 salary. No recovery will be made from employees who have already retired or will retire by September 30, 2025.
Dress Allowance for Newly Recruited Employees
The circular also stated that the dress allowance paid to new employees joining after July 2024 was not included in their pay in July 2025 in some circles. The Central Government reiterated that before July 2025, all eligible officers, including those joining mid-year (July 2024 – June 2025), will be paid dress allowance as per the prevailing instructions dated June 16, 2025.
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