Cabinet decided to retain LTC advance and Medical Advance in 7th Pay Commission
7th Pay commission in its report, recommended that all the interest free advances should be abolished
We have already raised concerns about abolishing the Advances for Medical Treatment and LTC [SEE : 7th Pay Commission recommendations on LTC advance and Medical Advance]
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 Central Government decision on the Advances is given below
“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”