April 16, 2025 . New Delhi: In a move that will benefit thousands of central government employees, the Department of Expenditure (DoE) under the Ministry of Finance has revised the rules regarding the Dress Allowance, now allowing it to be disbursed twice a year. The decision aims to address long-standing grievances among employees who previously had to wait up to a year to receive this allowance.
What Is Dress Allowance and Who Is Eligible?
Dress allowance is a monetary benefit provided to employees who are required to wear a specific uniform or attire as part of their official duties. It covers costs related to uniform purchase, maintenance, equipment, robe, kit, and shoe upkeep. The revised rule applies to a wide range of employees across ministries and departments.
Eligible personnel include:
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Military Nursing Service (MNS) officers
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Police officers and ACPs in union territories
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Executive staff of Customs, Central Excise, and Narcotics
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Legal and law enforcement officers in NIA and Bureau of Immigration
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Station Masters, trackmen, running staff of Indian Railways
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Staff car drivers and canteen staff
New Calculation Method: How Much Will You Receive?
The allowance will now be paid in two installments per financial year and calculated on a pro-rata basis. For example, an employee eligible for ₹20,000 annually who joins in August will receive:
₹20,000 ÷ 12 × 11 = ₹18,333
This formula ensures that employees joining mid-year receive fair compensation based on the number of months in service.
As per the Seventh Pay Commission, the standard dress allowance rates are:
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₹10,000 annually for most officers and uniformed personnel
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₹5,000 annually for other staff like trackmen, car drivers, and canteen workers
Notably, the commission also recommended that when Dearness Allowance (DA) increases by 50%, the dress allowance should rise by 25%, linking it directly to inflation and cost-of-living adjustments.
Why This Rule Change Matters
The earlier one-time annual disbursement system created challenges, especially for those joining after July, who often had to wait until the next cycle to receive their full entitlement. The revised policy provides immediate and more consistent support, particularly for frontline employees whose job requires proper uniform upkeep year-round.
This update is part of the government’s ongoing efforts to address employee welfare concerns and ensure equitable implementation of allowances across departments.