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7th Pay Commission: Big change for central employees, now this allowance will be reduced!

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The central government has taken a big decision regarding dress allowance for its employees, which is going to affect the pockets of lakhs of employees. Actually, the government has changed the rules of dress allowance under which now new employees will not get dress allowance for the whole year. Instead, now this allowance will be given on pro-rata basis. That is, if you join a job in the middle of the year, then you will get allowance for the number of months left from your joining till the next June.

What changes have been made in dress allowance?

The changes made by the central government in the rules of dress allowance will affect those employees who will start the job after July 2025. In the earlier system, if an employee joined the job in any month of the year, he used to get dress allowance for the whole year, but now this will not happen. Under the new rule, if you join after July 2025, you will get allowance only for those months which are from the date of your joining to June next year. That is, if you join in October, you will get dress allowance for only 9 months and not for the entire 12 months.

This change was announced by the Finance Ministry through an order in March 2025. It is clearly stated in this order that the dress allowance will now be given on a pro-rata basis. This means that the allowance will be calculated on the basis of your joining date. This rule will affect lakhs of employees who join various services of the Central Government every year.

How will dress allowance be calculated?

Under the new rule, dress allowance will be calculated on the basis of a specific formula. The Finance Ministry has explained this formula in a very clear and simple way. The formula is:

(Annual Dress Allowance ÷ 12) x (number of months from the month of joining to June of the next year)

Let us understand this through an example. Suppose, an employee joins the job in October 2025. Now, there are a total of 9 months from October to June next year. If the dress allowance of that employee is Rs 20,000 per annum, then the calculation will be like this:

  • Annual dress allowance = Rs 20,000
  • Allowance per month = 20,000 ÷ 12 = Rs 1,666.67
  • Allowance for 9 months = 1,666.67 x 9 = Rs 15,000 (approx)

In this way, the employee will get only Rs 15,000 as dress allowance instead of the full Rs 20,000. In the earlier system, he would get the full Rs 20,000 even if he joined in any month of the year. The government’s aim with this new rule is said to be to better manage financial resources and reduce unnecessary expenses.

How much dress allowance do you get?

The amount of dress allowance under the 7th Pay Commission is decided based on the category of employees and their service. Employees of different departments and services are given different amounts. Let us look at it in detail:

Dress allowance of Rs 20,000 per annum

  • Army, Navy, and Air Force officers : Officers of these three forces get a dress allowance of Rs 20,000 every year.
  • Central Armed Police Forces (CAPF) : Employees of forces like BSF, CRPF, ITBP, SSB, and CISF are also given an annual allowance of Rs 20,000.
  • Coast Guard : Coast Guard employees are also included in this category and they get Rs 20,000 annually.

Dress allowance of Rs 10,000 per annum

  • Military Nursing Service (MNS) Officers : These officers are given an allowance of Rs 10,000 every year.
  • Delhi, Andaman-Nicobar, Lakshadweep, Daman-Diu, and Dadra-Nagar Haveli Police Services : Employees of these Union Territory Police Services get Rs 10,000 annually.
  • Customs, Central Excise, and Narcotics Department : Employees of these departments are also given an allowance of Rs 10,000.
  • Indian Corporate Law Service (ICLS) Officers : These officers also get Rs 10,000 per annum.
  • Legal Officers of NIA : Legal officers of the National Investigation Agency have also been placed in this category.
  • Bureau of Immigration : Employees of this department also get an allowance of Rs 10,000.
  • Railway Protection Force (RPF) : RPF employees are also given an annual dress allowance of Rs 10,000.
  • Railway Station Master : Railway station masters also fall under this category and get Rs 10,000.
  • Defence Services and Union Territory Police : Employees of these services also get an allowance of Rs 10,000.

Dress allowance of Rs 5,000 per annum

  • Railway Trackman : Railway trackman employees get an allowance of Rs 5,000 every year.
  • Running Staff : Railway running staff, such as loco pilots and guards, also get Rs 5,000 annually.
  • Staff Car Driver : Government staff car drivers are also placed in this category.
  • Non-statutory departmental canteen employees : These employees are also given an allowance of Rs 5,000.

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