The central government has made a big change regarding the dress allowance. Now all the employees appointed in the government service on or after July 1, 2025, will get a dress allowance on the basis of monthly ratio (Pro-Rata) instead of annual lump sum amount. This amendment has been notified through an Office Memorandum issued by the Department of Personnel and Training (DoPT). This new rule is an important step towards bringing transparency and fairness in the calculation of allowances given to government employees.
How was dress allowance available till now
Currently, all government employees get a dress allowance for the whole year in a lump sum in the month of July every year, even if they joined in any month of the same year. That is, if an employee is appointed in March, then he would also get the amount for the whole year in July. This system was very beneficial for new employees because they used to get a full year’s allowance even for the initial months of service.
What will change with the new rule
Now employees who will be appointed on or after July 1, 2025, will be given a dress allowance according to their service period. This means that the amount of the annual allowance will be divided into 12 months. Then, the total amount will be decided according to the number of months in service from the month of appointment to June 30 of the next year.
For example: If an employee is appointed in October 2025, he will get a dress allowance for 9 months from October to June. This change will apply only to new employees. For employees who are already in service, the old rules will continue. This will ensure that there is an equal distribution between new and old employees.
No effect on retiring employees
The government has also clarified that the existing rules for dress allowance will remain the same for employees who joined the service before July 1, 2025. Similarly, no changes have been made for retiring employees as of now.
Employees who retire in December or before will get a dress allowance for half a year. At the same time, those who retire after December will be given full annual allowance.
However, the government has said that these rules related to retirement can be reviewed separately in the future. This shows that the government is ready to update these rules from time to time.
No change in the amount of dress allowance
Despite this change, there has been no revision in the total amount of dress allowance. The allowances given under the 7th Pay Commission will continue as before:
Employee category Annual dress allowance amount
General employees ₹5,000
Employees wearing uniform ₹10,000
Special services like armed forces ₹20,000