In a new update under the 7th Pay Commission, the Central Government has issued an important circular regarding the Dearness Allowance (DA) and Dress Allowance for government employees. The circular, released by the Ministry of Finance, outlines how the latest DA hike will also impact the calculation and disbursement of dress allowance for eligible employees across various departments.
According to the notification, the Dearness Allowance, which is revised twice a year — in January and July, will now be factored into the Dress Allowance component. This means that the recent DA hike approved by the Modi government will proportionally increase the amount employees receive as part of their dress allowance entitlement.
The Dress Allowance, introduced as a consolidated benefit under the 7th Pay Commission, replaced several earlier uniform-related allowances. It is granted annually to employees such as police personnel, defense staff, nurses, and other uniformed officials. With the DA revision, the updated circular clarifies the recalculated amount that each eligible category will receive, ensuring parity with inflation-linked salary adjustments.
Officials stated that the government aims to streamline the allowance structure and ensure uniform implementation across ministries and departments. The circular also directs all heads of departments to update payroll systems accordingly to reflect the revised rates from the next salary cycle.
This move comes as part of the government’s broader effort to maintain fair compensation for central government employees amid rising living costs. Employees and unions have welcomed the update, calling it a timely move ahead of the festive season.
