7th Pay Commission Alert: What will change in Dress Allowance from July 2025? complete details
Samira Vishwas October 22, 2025 12:24 AM

7th Pay Commission: The government has made dramatic changes in the rules of Dress Allowance. Now not only newly joined employees, but also those retiring in the middle of the year have become eligible for this allowance. Yes, such an update has come which will surprise everyone. What’s more, recovery of dress allowance can also start from those retiring after October 2025.

If someone in your house works in a central government department, then be alert immediately. Read the complete details of these new rules, otherwise you may regret later. Come, let us tell you the complete details of these latest rules of Dress Allowance, so that there is no confusion.

What is Dress Allowance?

Dress Allowance is a special allowance given to Central Government Employees, who have to wear uniform on duty. Earlier it came under different names, like clothing allowance, shoe allowance, uniform maintenance allowance and equipment allowance.

But after the 7th Pay Commission, all of them were combined into one Dress Allowance. This is credited with the salary of July every year, so that the employees can easily meet the expenses of their uniform.

The effect of new rules will start from July 2025

The latest guidelines of the government show that Central Government Employees joining after July 1, 2025 will also be eligible to get Dress Allowance. Earlier this benefit was available only to old employees. At the same time, there is a rule to recover extra amount from those retiring in October 2025.

But it is a matter of relief that there will be no burden of recovery on those retiring till 30 September 2025. This change is a big step towards making Dress Allowance more fair.

Good news for retirees, they will get proportionate benefit

In an old circular issued in June 2025, it was said that Central Government Employees retiring after July 2025 will follow the rules of 2020 only, unless approval is received from the Finance Ministry. Now after the clearance from the Finance Ministry, the decision has been taken – those retiring in the middle of the year will get proportional Dress Allowance according to their service period.

Earlier, many Central Government Employees were confused whether if they retired in June or July, they would get full allowance or half. Now everything is clear – Dress Allowance will be calculated based on your length of service. This update will make retirement planning easier.

Postal Department issued new orders

The Postal Department has clearly stated in its latest order that Central Government Employees who join before July 2025 will get Dress Allowance under the old rules till June 2025. The department also admitted that last year’s pending allowance was not included in the July salary of many people.

Now strict instructions have been given for improvement, so that no mistakes remain.

With these new rules, Central Government Employees will no longer have to worry about when and how much they will get Dress Allowance. Those who join or retire midway will also get full benefits, and confusion in departments will end. If you are also affected by this, then check with your HR quickly!

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