7th Pay Commission: The central government had amended a significant rule for central employees, which is essential for you to know. Employees must be wondering which rule has been changed. The central government has changed the laws related to dress allowance.
According to the government notification, such employees are to be given dress allowance on a proportionate basis instead of the full annual amount. This will benefit employees who have joined the service on or after July 1, 20255.
Currently, a dress allowance is deposited annually in July for all eligible government employees, regardless of their joining date within the financial year.
For which employees did the government make the rule?
Under the revised policy of the Central Government, employees joining after July 1, 2025, will be eligible for an annual dress allowance, paid monthly. Regarding the calculation of allowance, it will be based on the number of months the employee has been in service up to June 30 of the following year.
Additionally, the amended rule applies only to newly recruited individuals. It will affect the existing employees. If an employee joins in October, then they will be entitled to 9 months of dress allowance. This allowance will be available from October of that year to June of the new year.
New order on pension
The government informed that all the central government employees included in the Integrated Pension Scheme will now be eligible for the retirement and death gratuity benefits available under the old pension scheme.
The Department of Pension and Pensioners Welfare of the Ministry of Personnel has issued an order regarding the option to receive benefits under the Old Pension Scheme (OPS) for central employees under the New Pension Scheme (NPS) upon the death of a government employee during service or their dismissal from government service due to incapacity and disability.