All About Advances in 7th CPC

7th Pay commission in its report, recommended that all the interest free advances should be abolished. Unions have already raised concerns about abolishing the Advances for Medical Treatment and LTC .

Since these advances are reimbursable in nature, the government has now considered to restore four advances out of 12 Interest free advances which 7th CPC recommended to abolish.

After Cabinet Approval Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained.


The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs. 7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. 

All other interest free advances have been abolished. Percentage of HRA in 7th pay commission after cabinet approval. The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalizing the percentage based allowances. 

The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent 

In the press release issued by government said the following "The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances.  

The above press release concluded with a statement of " Till a final decision, all existing Allowances will continue to be paid at the existing rates” 
Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively.

Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.”