8th Pay Commission: THESE 12-Interest Free Advances Were Removed By 7th CPC, 4 Interest Bearing Advances Offered-- Check

The formation of the 8th Pay Commission has created a lot of buzz among central government employees regarding pay hike, perks and allowances that they are entitled to. While there is no official word on the exact date of the formation of the 8th pay panel, here’s a peak interest-free advances abolished by 7th CPC.

Under the 7th Central Pay Commission, there are two types of advances provided to government employees, i.e., interest-free and interest-bearing advances. The 7th CPC had recommended for all interest-free advances to be discontinued except that for medical treatment, travel allowance when the employee is on tour/transfer, leave travel concession, and travel allowance for the family of a deceased employee.

In 2015, 7th CPC had submitted its recommendations to the Central Government to abolish interest free advances. It mentioned, “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 Hence, to do away with outdated provisions and thereby Report of the Seventh CPC save on the costs involved in administering these advances, it is recommended that all Interest-free advances should be abolished.”

Here are the details of the advances

Amount: Rs 4500

Eligibility: GP<=2800

Remarks: Recoverable in max 30 monthly installments

Amount: Rs 4500

Eligibility: All Group C employees posted at a hill station either on first appointment or on transfer, for a period of not less than one year

Remarks: Recoverable in max 12 monthly installments

Amount: 1 month’s pay OR 2 months’ pay in case of transfer due to shift of HQ as a result of government policy

Eligibility: All employees transferred from one station to another in public interest

Remarks: Recoverable in max 3 monthly installments

Amount: An amount sufficient to cover the officials’ personal travelling expenses for a month or six weeks in case of prolonged tours

Eligibility: All cases where TA is admissible

Remarks: The advance shall be adjusted immediately after completion of tour

Amount: Limited to 3/4th of probable expenses admissible under the rules

Eligibility: Same as for retirement/transfer

Amount: Up to 90% of the fare

Eligibility: All eligible Central Government Employees

Amount: An amount not exceeding the net amount of leave salary including allowances for the first 30 days of leave after deduction of PF, House Rent, Income Tax, Recovery of Advances, etc.

Eligibility: All officials proceeding on leave for a period not less than 30 days

Remarks: Adjusted against the monthly salary bills

Amount: 90% of the package deal for specific major illnesses. Rs10,000 for indoor treatment or outdoor treatment of 3 months or less for cancer. Rs36,000 for treatment of TB where duration is more than 3 months

Eligibility: All Central Government employees except Railway employees

Amount: Rs 4500

Eligibility: GP<=4800

Remarks: Recoverable in max 10 monthly installments

Amount: Rs 7500

Eligibility: All non-Gazetted employees

Remarks: Recoverable in max 12 monthly installments

Amount: Rs 450

Eligibility: For those Central Government employees who undergo training through correspondence course conducted by the Central Hindi Directorate

Amount: Rs 500

Eligibility: All Central Government employees

Remarks: Recoverable in max 24 monthly installments

1 Motor Car Advance.

Rs1,80,000 on first occasion and Rs1,60,000 subsequently OR 8 months’ Basic Pay OR anticipated price of car, whichever is least

2 Motorcycle/ Scooter/ Moped Advance

Rs30,000 on first occasion and Rs24,000 subsequently OR 4 months’ Basic Pay OR anticipated price of Motorcycle/ Scooter/Moped, whichever is least Rs20,000 OR anticipated price of Moped only, whichever is less if pay<8560

3 Advance for purchase of Personal Computer

Rs80,000 on first occasion and Rs75,000 subsequently OR anticipated price of PC, whichever is less

4 House Building Advance (HBA)

34 months’ Basic Pay OR Rs7,50,000 OR Cost of House OR repaying capacity, whichever is the least for new construction/purchase of new house/flat. For a new house, the cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs7.50 lakh and a maximum of Rs30.00 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs30.00 lakh. The maximum limit for grant of HBA for enlargement of existing house shall be 34 months’ of pay in the pay band subject to a maximum of Rs1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.