Maths - Com. P.Suresh

 One Day, One Minute, One Rule – 152.
Admissibility and Proportionate Calculation of Dress Allowance

152. What are the updated guidelines for calculating the Dress Allowance for Central Government employees who join service after the annual payment month, and what specific formula has been prescribed for this proportionate disbursement?

According to Office Memorandum No. 19051/1/2017-E.IV dated 24th March, 2025, issued by the Ministry of Finance and forwarded by the Department of Posts via Order No. 41-2/2017-PAP dated 16.06.2025, significant modifications were made to the guidelines for Dress Allowance. The updated directive clarifies that if a Central Government employee joins service after the standard annual Dress Allowance has been credited in July, they are no longer eligible for a flat rate but will instead receive the allowance on a proportionate basis.

To ensure a standardized calculation, the government has prescribed a specific formula for determining this proportionate amount. The payment is calculated by taking the total annual allowance amount, dividing it by 12, and then multiplying that figure by the number of months remaining in the cycle—specifically from the month the employee joins government service until the month of June of the following year. This ensures that newly appointed staff receive a fair portion of the allowance corresponding to their actual period of service during their first year.