The central government has issued a fresh clarification on the payment and recovery of dress allowance for its employees, stating that both new recruits and officials retiring after July 30, 2025, will receive their proportionate allowance in the July 2025 salary itself. However, those retiring from October 2025 onwards will face recovery of any excess proportionate payment already made.

Dress allowance, credited annually with the July salary, increases by 25% every time Dearness Allowance (DA) rises by 50%. For the current year, the allowance has already been disbursed to all eligible employees.

In a circular dated September 24, 2025, the government said:

“With respect to the dress allowance to the officials retiring after July, 2025, it was mentioned in the aforesaid OM dated 16.06.20

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