Expected DA Calculator from January 2021 (Updated Nov 2020)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.
Good News for Central Government Employees!
Festival Advance Scheme Again Implemented!
Rs. 10000 Special Festival Advance for Central Govt employees
Special Festival Advance Scheme is being revived as a one-time measure. All central govt. employees can now get interest-free advance of Rs. 10,000, recoverable in maximum 10 installments. [Click to know more]
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
Click to view the detailed report of House Building Advance after 7th Pay Commission
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.
Rate of Interest for Advances
2015-16
Rate of Interest for Personal Computer Advance: 11.5%
2014-15
Rate of Interest for Motor Car Advance: 11.5%
Rate of Interest for Other than Motor Car Advance: 9%
2010-11
Rate of Interest for Motor Car Advance: 11.5%
Rate of Interest for Other than Motor Car Advance: 8%
2008-09
Rate of Interest for Motor Car Advance: 11.5%
Rate of Interest for Other than Motor Car Advance: 9%
Rate of Interest for Bicycle Advance: 5.5%
7th CPC Pay & Allowances Calculator July 2017
How to Calculate Interest for Personal Computer Advance
The formula for calculating the interest amount for personal computer advance is N/2 (A+1) x R/100 x 1/12
If an employee received Rs.30,000 as Computer Advance and he paid Rs. 500 per month with 60 installments:
61/2 (30000) x 11.5/100 x 1/12 = 8769
7th Pay Commission Recommendations on Advances
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
- Click to know more details
7th CPC Advance: Government Servants who die while in Service
The amount of an advance to the families of Government Servants who die while in Service which may be granted under Rule 79 shall not exceed Rs.25,000 – Orders issued [Click to know more]
Recent top developments on 7th Pay Commission Advances
- NCCPA appeal to grant festival advance to all pensioners and family pensioners November 2, 2020
- Salary and Pension advance for central government employees and Pensioners October 15, 2020
- Grant of Special Festival Package advance through UTSAV Cards to CG Employees October 14, 2020
- Rs 10000 is not a bonus! Festival Advance for Central Govt employees! October 13, 2020
- Interest-Free Festival Advance to Central Govt Government Employees October 12, 2020
- Rs 10000 Special Festival Advance for Central Govt employees October 12, 2020
- Grant of Advance – Amendment to Rule 80 of Compendium of Rules on Advances to Government Servants April 17, 2020
- Computer Advance Interest Rate 2020-21 for Central Government Employees March 18, 2020
- Home Loan Interest Subsidy – Interest Rate and Eligibility February 12, 2020
- 7th Pay Commission Advances: Restoration of Festival advance to CG Employees October 6, 2019
- HBA Interest Rate Declined from 8.5% to 7.9% October 4, 2019
- Festival Advance Increased to Civil and Teacher Pensioners August 7, 2019
- Abolition of Advance of Leave Salary as per 7th CPC Recommendations April 5, 2017
- Loans and Advances by the Central Government – Interest rates and other terms and conditions January 24, 2017
- Letter of CCGGOO to the Finance Secretary, GOI for cash disbursement to officers November 21, 2016
- Rs.10000 Advance in the form of Cash Payout to Central Government employees on 23.11.2016 November 17, 2016
- Personal Computer Advance for all Central Government Employees – Finmin Orders October 7, 2016
- Advances for Medical Treatment, TA on Tour or Transfer and LTC are retained – Finmin Orders October 7, 2016
- Interest rates for Loans and Advances by the Central Government – Finmin Orders February 6, 2016
- Advances to Central Govt Employees : Rate of Interest during 2015-16 February 6, 2016
- Abolishing 12 Interest free advances including LTC Advance recommended by 7th CPC November 26, 2015
- Advances to Government servants — Rate of interest for purchase of conveyances during 2013-2014. November 19, 2013
The NC JCM Staff side raised the point and Govt has denied…read more
ADVANCES (6th Pay Commission)
Interest-bearing Advances
| Description | Amount Whichever is less will be paid |
Eligibility (Basic pay) | Interest rate per annum |
installment in months |
| 1. Motor Car | Rs.1,80,000 OR
Rs. 8 months’ Pay + DP OR Price of the Vehicle |
Having pay of Rs. 19530 or more, excluding grade pay, per month in pay band | 11.5 (+2.5) | 200 |
| 2. (a) Computer | Rs. 50,000 OR
Rs. Price of the PC |
Having pay of Rs.19530 or more, excluding grade pay, per month in pay band | 11.5 (+2.5) | 150 |
| 2. (b) Computer | Rs. 30,000 OR
Price of the PC |
Pay of Rs.8560 or more, excluding grade pay, per month in pay band | 11.5 (+2.5) | 150 |
| 3. Scooter | Rs.30,000 OR
4 months’ Pay + DP OR Price of the Vehicle |
Pay of Rs.8560 or more, excluding grade pay, per month in pay band | 8.5 (+2.5) | 70 |
| 4. Moped | Rs. 20,000 OR
4 months’ Pay + DP OR Price of the Vehicle |
Having pay below 8560 excluding pay per month in the pay band | 8.5 (+2.5) | 70 |
| 5. House Building Advance | 34 month’s pay in the pay band subjected to a maximum of 1.80 lacs or cost of enlargement or repaying capacity, whichever is least.
The cost ceiling limit shall be 134 times the pay in the pay band Subject to a minimum of Rs. 7.50 lacs and maximum of Rs. 30 lacs Relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs. 30 lacs. |
Permanent employees | Adv. Int. up to (in lakhs) 0.50 5.0 |
240 Principal=180 Interest= 60 |
Interest-free Advances
| Type of Advance | Amount Payable | Eligibility | instalment in months |
| 1. Festival advance | Rs. 3,000 | Grade Pay does not exceed Rs.4,800 | 10 |
| 2. Cycle | Rs. 3,000 | Grade Pay does not exceed Rs.2,800 | 10 |
ADVANCES (5th Pay Commission)
Interest-bearing Advances
- 34 times basic pay + DP or
- A maximum of Rs. 7.5 lakhs or
- Actual Cost or
- Enlargement, 1.8 lakh max. or
- Cost of Enlargement or
- Rural case, 80% of cost or
- Repaying capacity
| Description | Amount Whichever is less will be paid |
Eligibility (Basic pay + DP) |
Interest rate per annum |
instalment in months |
| 1. Car | Rs.1,80,000/- OR
8 months’ Pay + DP OR Price of the Vehicle |
Rs.15,750 and above | 11.5 (+2.5) | 200 |
| 2.(a) Computer | Rs.50,000 OR
Price of the PC |
Rs.15,750 and above | 11.5 (+2.5) | 150 |
| 2.(b) Computer | Rs.30,000 OR
Price of the PC |
Rs.6,900 and above | 11.5 (+2.5) | 150 |
| 3. Scooter | Rs.30,000 OR
4 months’ Pay + DP OR Price of the Vehicle |
Rs.6,900 and above | 8.5 (+2.5) | 70 |
| 4. Moped | Rs.20,000/- OR
4 months’ Pay + DP OR Price of the Vehicle |
below Rs.6,900 | 8.5 (+2.5) | 70 |
| 5. Cycle | Rs. 1,500 | Rs.7,500 and below | 5.5 | 10 |
| Permanent employees | Adv. Int. up to (in lakhs) 0.50 5.0 |
240 Principal = 180 Interest = 060 |
Interest-free Advances
| Type of Advance | Amount Payable | Eligibility | instalment in months |
| 1. Festival advance | Rs. 1,500 | Basic Pay Rs. 8,300 and below | 10 |
| 2. On Transfer | one month pay | employees on transfer to other Station | three |
| 3. On Tour | TA for max. 30 days | employees on prolonged tour | one |
| 4. On Leave | salary for max. 30 days | employees proceeding on leave for more than 30 days |
one |
7th Pay Commission Other Topics
- 7th Pay Commission Pay Scale Calculator
- 7th Pay Commission Salary Calculator 2019
- 7th Pay Commission Pay Fixation Calculator
- 7th Pay Commission DA Rates Table
- 7th Pay Commission Pay Fixation
- 7th Pay Commission MACP Scheme
- 7th Pay Commission Children Education Allowance
- 7th Pay Commission Transport Allowance
- 7th Pay Commission Increment
- 7th Pay Commission House Rent Allowance
- 7th Pay Commission Classification of Posts
- 7th Pay Commission LTC Rules
- 7th Pay Commission Leave Rules
- 7th Pay Commission Travelling Allowance
- 7th Pay Commission House Building Advance
- 7th Pay Commission Allowances
- 7th Pay Commission Fitment Table
- 7th Pay Commission Advances
- 7th Pay Commission CGEGIS
- 7th Pay Commission Risk & Hardship Allowances
7th pay k anusaar motor car advance kitna aur eligibility criteria h
What is your basic pay?
If you have to enclose a proforma bill from the dealer while applying for personal computer advance?
If I apply for TA advance 10000. Then what amount will be granted by office.
Generally 90% of the amount
Kya festival and warm clothing advance Milega 7cpc me
Pls let me know the documents need for the HBA advance.
Scooter advance notification of 2017 is circulated by MHRD.?
Sir,
please let me know the quantum of HBA eligablity in 7th Pay Commission to Central Government Employees and Government notification on the above subject.
what is the rate of interest for PC advance for current year?