Good news for central govt employees: This allowance to be given more than once a year now | Details here

In a piece of good news for central government employees, the long-standing demand for a more flexible disbursement of uniform allowance has finally been addressed. The Finance Ministry has announced a major update, stating the uniform allowance for will now be more than once a year on a pro-rata basis, instead of the earlier fixed annual schedule. Until now, employees were granted the allowance only once a year, usually credited in July, regardless of when they joined the service.

This system, in place since a circular issued back in 2017, had been a sore point among employees who joined after July, as they had to wait nearly a year to receive the benefit. However, the latest circular issued on March 24, 2025, brought a much-needed change. The revised policy ensures that new recruits will no longer have to wait till the next financial year as they will receive the uniform allowance based on the duration of their service within the year.



As per a circular released by the Ministry of Finance, the uniform allowance encompasses several components such as clothing allowance, initial equipment allowance, kit maintenance allowance, robe allowance, shoe allowance, and more. Under the new rules, the uniform allowance will be calculated on a pro-rata basis using the formula: (Annual Amount ÷ 12) × Number of Months from Date of Joining till Next June. For example, if an employee joins in August and is entitled to an annual allowance of Rs 20,000, they would now receive: (20,000 ÷ 12) × 11 = Rs 18,333, based on 11 months of service.

Under the 7th pay commission, the uniform allowance varies by role and department: The central government has also proposed the 8th Pay Commission, which is expected to bring salary and pension hikes for over 1 crore government employees and pensioners. With this announcement, many are curious to know how much their monthly income will increase under the new pay structure. Reports suggested that a formula similar to the 7th Pay Commission will be used to determine salary increments for employees across Level 1 to Level 10.

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