In a major policy update, the Ministry of Finance’s Department of Expenditure (DoE) has revised the Dress Allowance rules under the 7th Pay Commission. Going forward, central government employees who join service after July will now be eligible to receive the Dress Allowance on a pro-rata basis. This marks a significant shift from the earlier practice where the allowance was granted only in July every year.
Until now, the Dress Allowance was credited once a year in July, making only those employees who were already in service at that time eligible. However, as per the Office Memorandum issued on March 24, 2025, employees who join after July will no longer be left out. They will receive the Dress Allowance proportionally from their date of joining till the following June.
The Ministry has introduced a simple formula to compute the Dress Allowance:
Dress Allowance = (Annual Amount / 12) × Number of Eligible Months
Example:
If an employee is entitled to ₹10,000 as the annual Dress Allowance and joins in December, they will receive the allowance for 7 months (from December to June):
₹10,000 / 12 = ₹833.33 × 7 months = ₹5,833
As per the 7th Pay Commission’s recommendations, the following categories of employees receive a fixed yearly Dress Allowance, which also covers expenses related to washing and maintenance of uniforms:
| Employee Category | Annual Amount (₹) |
|---|---|
| SPG (Operational) | ₹27,800 |
| SPG (Non-Operational) | ₹21,225 |
| Defence Forces, CAPFs, RPF, IPS | ₹20,000 |
| MNS Officers, DANIPS, ACP (Delhi Police) | ₹15,000 |
| Customs, Excise, Narcotics Staff | ₹10,000 |
| Corporate Law, Immigration Services | ₹10,000 |
| PBORs, Station Masters, Uniformed Railway Staff | ₹10,000 |
| Trackmen, Drivers, MTS, Canteen Staff | ₹5,000 |
| Nurses | ₹1,800 per month |
This move ensures fair and equitable benefits for new employees, regardless of their date of joining. In the past, employees joining after July had to wait until the next financial cycle to avail the allowance, effectively missing out on a full year’s benefit.
Now, with the pro-rata model in place:
All eligible employees receive their due share
The process is more transparent and inclusive
Financial planning for staff becomes easier and fairer
The 7th Pay Commission also recommended that whenever the Dearness Allowance (DA) rises by 50%, the Dress Allowance should be increased by 25%. This ensures the allowance keeps up with the rising cost of living and uniform maintenance.
The revised Dress Allowance rule is a welcome relief for newly recruited central government employees. It reflects the government's commitment to creating equitable, efficient, and employee-friendly compensation policies under the 7th Pay Commission framework.
As India continues to evolve its administrative structure, such reforms not only enhance the morale of government employees but also promote greater financial inclusion and fairness across the workforce.
