• Source:JND
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7th Pay Commission News: The central government has made a major change to its dress allowance policy for its employees. The dress allowance will now be paid twice a year rather than annually as per a recent circular released by the Ministry of Finance on March 24, 2025. A long-standing employee demand that had been unmet for the previous seven years is addressed by this decision.

Defence personnel and other workers who begin government service in the middle of the year will find significant relief from the revised policy. Previously, there were financial disparities because those who joined after July could not receive the dress allowance. After all, it was only given out once in July. Now that the new system is in place, employees will receive dress allowance on a pro-rata basis based on how many months they worked during the fiscal year. In addition to improving financial equity, this shift is anticipated to increase employee satisfaction and trust.

The Ministry has stated that the dress allowance will be allocated proportionately under the updated formula. For example, if an employee joins in August and is eligible for a Rs 20,000 annual dress allowance, the calculation would be based on 11 months of service: Rs 20,000 divided by 12 multiplied by 11 equals Rs 18,333. This strategy guarantees that workers get a just compensation commensurate with their length of service.

Dress Allowance Was Introduced In 2017

Dress allowance, which was first implemented in August 2017, consists of several parts, including robe allowance, shoe allowance, clothing allowance, and kit maintenance allowance. Employees who must wear a specified uniform while on duty are eligible for it.

Military personnel from the Army, Navy, Air Force, and other uniformed services like the Coast Guard and CAPF are entitled to Rs 20,000 per year, per the 7th Pay Commission. Employees of the Bureau of Immigration, Customs, Narcotics, NIA, MNS, Police, and ICLS receive Rs 10,000 a year.

In a similar vein, Union Territory Police personnel, civilian defence workers, and railway station masters are all eligible for Rs 10,000. In the meantime, Rs 5,000 is given annually to support employees like trackmen, canteen workers, staff car drivers, and running staff.

A progressive step toward administrative transparency and employee welfare is the government's decision to implement a biannual and proportionate dress allowance system.

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