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New central government employees joining after July 2025 will receive dress allowance on a proportionate basis, not full, based on a formula.
Dress Allowance is a fixed annual payment provided by the government to certain categories of central government employees to cover the cost of uniforms or specific attire required for their official duties.
7th Pay Commission: New central government employees joining after July 2025 will no longer be eligible to receive full annual dress allowance, according to the revised policy. It said such employees will get the dress allowance on a proportionate basis.
What Is A Dress Allowance?
Dress Allowance is a fixed annual payment provided by the government to certain categories of central government employees to cover the cost of uniforms or specific attire required for their official duties.
Introduced under the 7th Pay Commission, it replaced various previous allowances like washing, uniform, and kit maintenance allowances. The amount varies depending on the employee’s role. For example, personnel in defence, paramilitary forces, or postal services may receive higher allowances. It is typically paid annually in July.
What’s The Change In The Policy On Dress Allowance?
According to the revised policy, new recruits joining the service after July 2025 will receive dress allowance on a proportionate basis, not full.
The proportionate Dress Allowance will be calculated using the formula: (Annual Allowance ÷ 12) × Number of months from joining till June of the following year.
In a circular dated June 16, 2025, the Ministry of Communications said, “I am directed to forward herewith a copy of the Ministry of Finance, Department of Expenditure Office Memorandum No. 19051/1/2017-E. IV dated 24th March,2025 on the subject cited above for information and necessary action. In supersession of this office OM No. 41-2/2017-PAP dated 05.03.2020, the dress allowance in respect of the new recruits joining after July 2025 will be governed by the aforementioned order dated 24.03.2025 of MoF which provides for proportionate payment of dress allowance.”
In an office memorandum dated March 24, 2025, the Department of Expenditure, under the Ministry of Finance, said, “lf a central government employee has joined service after dress allowance is paid in the month of July, dress allowance would be given on proportionate basis. ii. Proportionate payment of dress allowance would be given by using the following formula = Amount + 12 x No. of months (from the month of joining government service to the month of June of the following year).”
What About Those Retiring After July 2025?
The Ministry of Communication said that in respect of the officials retiring after July, 2025 the department is seeking clarification from the Ministry of Finance. Till the clarification is received from the finance ministry, the existing instructions dated March 5, 2020, will continued to be followed.
The existing instructions say: “Person retiring after December of the calendar year shall be eligible for full Dress Allowance. Those retiring by December in the calendar year Shall be eligible for half of the Dress Allowance.”
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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