Abolition of Advance of Leave Salary as per 7th CPC Recommendations

Abolish Advance of Leave Salary for 7th CPC Recommendations

The proposal to abolish the Advance of Leave Salary for 7th CPC Recommendations has been put forth by the government. This advance, which was previously granted to central government employees, allowed them to receive up to six months’ leave salary in advance, but with the implementation of the 7th CPC recommendations, the government has deemed it necessary to do away with this benefit. The decision has been met with mixed reactions from employees, some of whom view it as a necessary sacrifice in light of the economic situation, while others see it as an unwelcome change to their compensation package.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VIII No.16/2017
RBE No. 27/2017
New Delhi,

Dated : 23.03.2017

No.E(P&A)I-2017/CPC/LE-2
The General Managers and FA&CAOs,
All Indian Railways & Production Units.

Sub: Grant of Advances – Seventh Central Pay Commission recommendations – Discontinuance of Advance of Leave Salary.

The Seventh Central Pay Commission vide Para 9.1.4 had recommended that all the interest free advances being granted to the Central Government employees should be abolished. The Government’s decision in this regard has been conveyed by the Ministry of Finance vide their OM No.12(1)/E.II(A)/2016 dated 07.10.2016. According to the instructions contained therein, the Advance of Leave Salary in addition to six other advances has been abolished.

2. The Government’s decision in respect of abolition of advance of leave salary has been considered by the Ministry of Railways in consultation with Finance Directorate. It has been decided to abolish Advance of Leave Salary w.e.f.07.10.2016. The cases where the advances have already been sanctioned need not be reopened.

3. The provisions in respect of advance of leave salary are contained in Rule No. 548 of Indian Railway Establish ment Code (IREC), Volume-I, 1985 Edition (Reprint Edition-2008). In view of this, in exercise of the powers conferred by the proviso to Article 309 of the Constitution, the President is pleased to direct that Rule No. 548 of IREC Vol.-I may be amended as in the enclosed Advance Correction Slip No.131

4. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

5. Please acknowledge receipt.

DA:- Correction Slip.

sd/
(Anil Kumar)
Dy. Director/E(P&A)-I
Railway Board.

ADVANCE CORRECTION SLIP TO THE INDIAN RAILWAY ESTABLISHMENT CODE, VOLUME-I,1985 EDITION- (THIRD REPRINT EDITION -2008)

Advance Correction Slip No._131

The following amendments may be made to Rule No.548 of the Indian Railway Establishment Code, Volume -I, 1985 Edition (Reprint Edition – 2008):-

Rule 548 may be Substituted as under:

548.Advance of Leave Salary.

The Provision stands deleted as the advance in this regard has been abolished by the seventh Pay Commission.

(Authority: Railway Board’s Letter No.E(P&A)I-2017/CP/LE-2 dated 23.03.2017)

Download: Railway Board Order