7th Pay Commission: Govt discontinues 7 interest free advances for employees

New Delhi: Government has discontinued seven interest free advances, including those for purchase of bicycle and warm clothing, in pursuance of recommendations of the 7th Pay Commission.

Finance Ministry said bicycle advance, festival advance and natural calamity advance have been abolished.

Also, advance of pay on transfer, advance of leave salary, advance for law suits as well as for training in Hindi through correspondence course have been discontinued.

All interest free advances stand discontinued with the exception of interest free advance for medical treatment, travelling allowance for family of deceased, travelling allowance on tour or transfer and leave travel concession (LTC), according to an office memorandum.

"The interest bearing advances relating to motor car advance and motorcycle/scooter/moped advance will stand discontinued," the Expenditure Department said.

However, government staffers will be entitled for advance to buy personal computer for up to Rs 50,000. This advance can be availed five times during the entire service period.

The government has implemented a 2.57-time hike in basic salary for 1 crore government employees and pensioners as per the 7th Pay Commission recommendations. The pay hike has been made effective January 1, 2016.

The Pay Commission had recommended abolition of all interest free advances, except four -- advances for medical treatment, travel allowance on tour/transfer, travel for family of deceased employees and LTC.