Non Practicing Allowance: 7th Pay Commission Recommendations
As per the recommendations of the 7th Pay Commission, new rates of Non Practicing Allowance (NPA) for doctors have been announced. The NPA, which is an allowance granted to medical professionals who do not practice medicine, will now be equivalent to 20 percent of their Basic Pay. This recommendation by the Commission is aimed at recognizing the importance of medical professionals in the healthcare system and providing them with adequate compensation for their services. With this new announcement, doctors can expect a significant increase in their earnings, thereby improving their standard of living.
As per the notification that was issued on May 18th, 1962, an amendment was made in Fundamental Rules No. 9 (25), which resulted in Non-Practising Allowance being granted to doctors in lieu of their private practice. This allowance was introduced as a means of compensating doctors for the loss of income that they would have otherwise incurred if they were not allowed to practice privately. The allowance is granted to doctors who are employed in government hospitals and healthcare centres, and it is calculated based on their salary and the number of years that they have been in service. This policy has helped to ensure that doctors are incentivized to provide high-quality care to their patients, without having to worry about the financial implications of not being able to practice privately.
Rate of Non-Practicing Allowance
According to the revised rates of Non-Practicing Allowance for Doctors as per 7th Pay Commission, doctors will receive an allowance that is equal to 20 percent of their Basic Pay. This allowance is given to doctors who do not engage in any private practice outside of their regular work hours, and it is intended to compensate them for their dedication to their profession and their commitment to providing healthcare services to the public.
NPA in 6th CPC 25% of Basic Pay
Non Practicing Allowance (NPA), at the rate of 25 percent of Basic Pay, is paid to medical doctors occupying posts for which minimum qualification of a medical degree is prescribed. There are demands to raise this allowance to 40 percent of Basic Pay.
7th CPC Analysis and Recommendations
The VI CPC had included a detailed rationale for the grant of NPA in its recommendations. Most of the reasons are still valid and there is no need to reiterate them here.
However, in line with our general approach of rationalizing the percentage based allowances by a factor of 0.8, we recommend that NPA should be paid at the rate of 20 percent of Basic Pay, subject to the condition that Basic Pay + NPA should not exceed the average of Apex Level and the level of Cabinet Secretary.
Currently, in the case of those drawing either NPA or MSP or both, the amounts of NPA/MSP are included with the Basic Pay and HRA is being paid as a percentage of the total amount.
The Commission recommends that HRA should be calculated as a percentage of Basic Pay only and that add-ons like NPA, MSP, etc. should not be included while working out HRA. (7th CPC Report para 8.7.16).
7th CPC Salary Calculator with NPA
Click the below link for calculating new revised pay with Non Practicing Allowance (NPA) as per the recommendations of 7th Pay Commission.
DA Calculation with NPA
DA calculation with NPA as per 7th Pay Commission. For example…
A Doctor draws basic pay of Rs. 74,000 in the Matrix Pay Level 11 and DA rate is 17%…
|Calculation of NPA and DA
|7th CPC Matrix Level
|7th CPC Matrix Pay
|DA from July 2019 (17%)
Top Developments on NPA
|Revised rates of Non Practicing Allowance (NPA) to Armed Forces Medical Services
|Non Practicing Allowance to the Doctors – Processing of payment of revised NPA – CPAO Order
|7th CPC NPA : Veterinary posts – Clarification issued by Finmin
|7th CPC NPA : 20% of Revised Basic Pay – Finmin Orders on 7.7.2017
What is the Non Practicing Allowance (NPA) under the 7th Pay Commission?
The NPA is a type of allowance granted to employees in the medical profession or those who are not practicing their profession due to administrative or other reasons.
What was the rationale for the grant of NPA according to the 6th Pay Commission?
The 6th Pay Commission had provided detailed reasons for the grant of NPA, which are still considered valid and do not need to be reiterated.
What is the recommended rate of NPA under the 7th Pay Commission?
The 7th Pay Commission recommends that NPA should be paid at a rate of 20 percent of Basic Pay.
Is there any limit on the total amount of Basic Pay + NPA for the determination of NPA?
Yes, the 7th Pay Commission recommends that the total amount of Basic Pay + NPA should not exceed the average of Apex Level and the level of Cabinet Secretary.