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Business Jun 17, 2025

Centre revises dress allowance rule for new recruits

Starting July 2025, new central government employees won't have to wait months for their dress allowance. Instead, they'll get paid for the exact time they've worked, thanks to a new pro-rata system announced in March 2025.
The goal? More clarity and quicker payouts.

TL;DR

How the updated formula works

The updated formula is simple: (Annual Allowance / 12) x Number of months from joining until next June.
No more waiting till July if you join mid-year—your allowance arrives sooner, making budgeting easier right from your first months on the job.

Benefits aligned with actual time worked

This change lines up your benefits with how long you've actually worked, so you're not left guessing or waiting.
For anyone starting a government job after July 2025, it means less confusion and fairer compensation from day one.