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7th Pay Commission Update: Changed rules for government employees, will this allowance be cut? – Dress Allowance Rule Change for New Government Employees after 1 July 2025

7th pay commission update: The central government has made a big change in the dress allowance. Now any employees who will be appointed in government service on 1 July 2025 or after 1 July 2025, will get the dress allowance once a year on the basis of monthly ratio (Pro-Rata). This amendment has been notified through an office memorandum issued by the Department of Personnel and Training (DOPT).

How did you get dress allowance till now?

At present, all eligible government employees get a lump sum of the entire year dress allowance every year, even if they have joined any month of the same financial year. That is, if an employee is also appointed in March, then he also gets the amount of full year in July.

What will change under the new rule?

Now those who will be appointed on 1 July 2025 or after that will be given the dress allowance according to their stay in service. That is, the annual allowance will be distributed in 12 months. Then the total amount will be fixed according to the number of months in the service from the month to 30 June next year.

For example, if an employee is appointed in October 2025, he will get 9 months dress allowance from October to June. This change will only apply to new employees. The old rules will continue for the employees who are already in service.

No effect on retirement employees

The government has also made it clear that the existing rules of dress allowance will remain the same for the employees who have come in service before 1 July 2025. Similarly, no change has been made for the retiring employees.

Employees who retire on or before December will get a half -year dress allowance. At the same time, those who retire after December, will be given full annual allowance. However, the government has definitely said that further reviews can be done further regarding these rules related to retirement.

There is no change in the amount of dress allowance

Despite this change, no amendment has been made in the total amount of dress allowance. The allowance under the 7th Pay Commission will continue as before:

  • ₹ 5,000 – For General Employees
  • ₹ 10,000 – For employees wearing uniforms
  • ₹ 20,000 – For special services like armed forces

Also read: SWP VS ELSS: Retirement Income or Tax Savings? Which scheme of mutual fund is best for you?

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