7th Pay Commission Compendium Rules on Salary Advances to Central Government Employees
Lending a specific amount of money without interest in order to tackle the expenses to celebrate the festivals.
Lending a specific amount of money with a meager interest to buy a computer or two-wheeler.
7th Pay Commission suggested to abolish all Interest-Free advances except Travelling Allowance Advance, LTC Advance and Medical Treatment Advance.
The 7th Central Pay Commission recommended in its report that generally salary advances are classified in two segments such as interest free and interest bearing advances. The rate of interest on advances are being notified by the Government of India from time to time and the interest rates are prescribed for each financial year.
Interest Free and Interest bearing Advances are given below:
Interest Free Advances
- Festival Advance
- Travelling Allowance Advance
- LTC Advance
- Bicycle Advance
- Warm clothing Advance
- Medical Advance
- Hindi course Advance
- Flood Advance
- Pay on Transfer Advance
- Leave Salary Advance
Interest Bearing Advances
- Scooter Advance
- Computer Advance
- Typewrite Advance
- Car Advance
- House Building Advance
Interest Free are given below after 7th Pay Commission…
- Advance of Travelling Advance on Tour/Transfer
- Advance of Leave Travel Concession
- Advance of Medical Treatment
Interest bearing Advances are given below after 7th Pay Commission…
- Personal Computer Advance
- House Building Advance
Personal Computer Advance
The eligibility of personal Computer Advance for all Central Government Employees is Rs. 50,000 or actual price of PC, whichever is lower.
Interest Rate for Personal Computer Advance
The interest rate for the advance is 11.5%. The calculation of interest rate for the advance and repayment method are expalined in another article. The computer advance will be allowed maximum five times in the entire service. [Click to read continue]
What is Festival Advance?
This festival interest-free loan is intended to meet the unexpected expenses incurred during the festivities. The 7th CPC suggested abolishing the advance. Most of the employees are seeking modification in some advances in the 7th CPC. The NC JCM has also insisted on the Govt to restore the advance.
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 meager 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.
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 (vacant land) on HBA.
List of Abolished Advances after 7th Pay Commission
Government of India decision on 7th CPC recommendations on Advacnes to Central Government employees
- Bicycle Advance – Abolished
- Warm Clothing Advance – Abolished
- Advance of Pay on Transfer – Abolished
- Festival Advance – Abolished
- Natural Calamity Advance – Abolished
- Advance of Leave Salary – Abolished
- Advance for Law Suits – Abolished
Recent top developments on 7th Pay Commission Advances
The NC JCM Staff side raised the point and Govt has denied…read more
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