Centre Clarifies Dress Allowance Rules for Retiring and New Employees
The Centre has updated its dress allowance rules under the 7th Pay Commission, providing clarity for both retiring and newly recruited employees. Previously, employees joining or retiring mid-year did not receive dress allowance on a proportionate basis. Now, they will be paid accordingly. The new rules apply to all employees retiring after September 30, 2025. Those retiring before this date will not have any recovery made from their dress allowance. New employees joining after July 1, 2025, will also benefit from the revised rules. However, those joining before July 2025 will receive dress allowance as per the rules in effect until June 2025. The Centre's revision of dress allowance rules under the 7th Pay Commission ensures fairness and clarity for employees retiring or joining mid-year. Employees retiring from October 2025 may face additional payments if necessary.
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