8th Pay Commission: 12 interest-free advances were removed by the 7th CPC - here's why

While there has not been much update on the 8th Pay Commission in the last few weeks, it is expected that the new pay panel will be officially set up soon. Once in office, it will review various pay and perks of Central Government employees.

In the lead-up to the formation of the 8th Central Pay Commission (CPC), this article looks at some little-known perks that were provided to Central Government employees interest-free but removed by the 7th Pay Commission.

7th CPC removed as many as 12 interest-free advances that were being provided to Central Government employees till the 6th CPC.

An interest-free advance is provided to an employee for specific expenses.

The Staff Side had requested the 7th CPC to increase all these interest-free advances to three times their present value. However, the 7th CPC decided to do away with these advances.

"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 Hence, to do away with outdated provisions and thereby save on the costs involved in administering these advances, it is recommended that all Interest-free advances should be abolished," the 7th CPC noted in its report.

List of abolished interest-free advances

The 7th CPC removed the following 12 interest-free advances."