7th Central Pay Commission Recommendations on Advances
7th CPC Advances : Generally advances are classified in two segments such as interest free and interest bearing advances. The rate of interest on advances are being published by the Government of India from time to time and the rates of interest are prescribed for each financial year.
Interest Free Advances are given below :
1. Pay on Transfer Advance
2. Travelling Allowance Advance
3. LTC Advance
4. Leave Salary Advance
5. Festival Advance
6. Bicycle Advance
7. Warm clothing Advance
8. Medical Advance
9. Hindi course Advance
10. Flood Advance
Interest Bearing Advances :-
1. Scooter Advance
2. Computer Advance
3. Typewrite Advance
4. Car Advance
5. House Building Advance
Most of the employees are seeking modification in some advances in 7th CPC. The first priority has to be given for House Building Advance, the entitlement amount for construction or purchasing flats are sanctioned very less amount and rules and regulations should be revised and relaxed to purchase land (vancant land) on HBA.
7th Pay Commission has recommended that the two types of advances are granted to government employees: Interest-free and Interest bearing, there is a general demand from the JCM-Staff Side to increase all interest-free advances to three times their present value.
Analysis and Recommendations : As can be seen from the table above, the amount of most of the advances is quite low. With the increased salary packages provided after successive Pay Commissions, these advances have lost their relevance. Hence, to do away with outdated provisions and thereby save on the costs involved in administering these advances, it is recommended that all Interest free advances should be abolished.
Interest-bearing Advances : Analysis and Recommendations
The present position is that meagre funds are allotted for these advances and only a few manage to avail this facility. In fact, budget provision for all of them, except Advance for purchase of Personal Computer, has been reducing over the years.
Regarding Motor Car Advance and Motor Cycle/Scooter/Moped Advance, we are of the view that quite a few schemes for purchase of vehicles are available in the market from time to time. The employees should avail of these schemes and both these advances should be abolished.
Regarding other interest-bearing advances, the following is recommended: