The Ministry of Finance has issued a fresh directive modifying the guidelines for the payment of Dress Allowance to Central Government employees. This comes as a clarification to the previous Office Memorandum (OM) dated August 2, 2017, which governs the grant of Dress Allowance under the recommendations of the 7th Central Pay Commission.
According to the revised guidelines, employees who join government service after the annual Dress Allowance disbursement in July will now receive the allowance on a pro-rata basis. The amount will be calculated based on the number of months remaining in the financial year.
New Calculation Formula
For newly joined employees, the Dress Allowance will be determined using the formula:
(Total Annual Dress Allowance / 12) × Number of Months from Joining to June
This change ensures fair distribution of the allowance and addresses concerns raised by various government departments regarding its applicability to new recruits.
Other Terms Remain Unchanged
The Ministry clarified that aside from this modification, all other existing rules regarding the Dress Allowance, as per the 2017 guidelines, will remain unchanged. The order also applies to employees under the Indian Audit and Accounts Department, with approval from the Comptroller & Auditor General of India.
The revised guidelines have been approved by the Secretary (Expenditure) and have been officially communicated to all government ministries and departments.
