7th Pay Commission: Central government changes rules, this allowance of employees will be affected..

The Central Government has taken a major decision affecting employee allowances. The government has amended the rules regarding dress allowance. According to the new directives, new employees joining the job after July 1, 2025, will also benefit from this. The Postal Department has issued a new order in this regard, clarifying the situation for retired and newly recruited employees. This new order brings relief to employees joining or retiring mid-year. They will no longer have to worry about when and how much their dress allowance will be paid, as the rules are now clear.

The order, issued on September 24, 2025, states that employees joining or retiring mid-year will now be paid a dress allowance on a pro-rata basis. Dress allowance is an amount the government provides to employees who are required to wear uniforms while on duty. The Ministry of Finance stated in a circular issued in August 2017 that dress allowance is now a combination of several existing allowances. Such as clothing allowance, basic equipment allowance, uniform maintenance allowance, gown allowance, and shoe allowance.

Approval from the Ministry of Finance
An earlier order issued in June 2025 stated that clarification had been sought from the Ministry of Finance for employees retiring after July 2025, and until then, the old 2020 rules would remain in effect. Now, the Ministry of Finance has clarified that just as newly recruited employees receive a dress allowance based on the year, employees retiring mid-year will also receive a proportionate dress allowance.

Allowance paid with the July salary
The Postal Department stated that the dress allowance is paid with the July salary. Therefore, many employees retiring this year have already received the full or half of the allowance. Under the new rules, employees retiring from October 2025 will be subject to recovery of the additional payment if necessary, but no recovery will be made from employees retiring before September 30, 2025.

Clarification for new employees
The department has also clarified that employees joining before July 2025 will receive dress allowance as per the rules applicable until June 2025. It was observed in some places that the previous year's dress allowance was not included in the July 2025 salary, so instructions have been issued to correct this.

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