Centre Revises Rule Under 7th Pay Commission - Check What’s Changing for New Joinees

The Ministry of Finance has announced that it has revised its guidelines pertaining to the disbursement of Dress Allowance to Central Government employees, particularly addressing concerns raised by those who join service mid-year.

For the uninitiated, a dress allowance, also known as a uniform allowance, is a financial benefit provided to employees, especially from the central government, to cover the cost of purchasing and maintaining required uniforms or specific attire for work. This allowance enables employees meet the dress code requirements of their job and can include costs for clothing, accessories, and even laundry or upkeep.

In an Office Memorandum released by the Department of Expenditure, the government has introduced a pro-rata system for granting Dress Allowance to newly inducted employees. This comes as a partial modification to an earlier order dated August 2, 2017, which had stipulated that the allowance would be credited annually in the month of July.

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As per Office Memorandum dated March 24, 2025, order issued by the Ministry of Finance says “The matter has been considered in this Department and in partial modification of the said OM dated 02.08.2017, the following is clarified:- i. lf a Central Govt. employee has joined service after Dress Allowance is paid in the month of July as per the instructions mentioned in para 4 of the said OM dated 02.08.2017, Dress Allowance would be given on proportionate basis.”

Under the revised guideline, employees who enter government service after the annual disbursal in July will no longer have to wait for the entire year for their entitlement. Instead, they will now receive a proportionate amount based on their month of joining.

“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),” the memorandum added.

For instance, if an employee joins in December 2025, they will be eligible for seven months' worth of the allowance—credited directly to their salary.

According to the same memorandum, several references are being received in this department seeking clarification relating to para "4" of the said Office Memorandum (OM) which provides that the amount of Dress Allowance shall be credited to the salary of employees directly once a year in the month of July.