8th Pay Commission: ₹10 lakh interest-free car loan, festival bonus among new demands – Details here

Fresh buzz has emerged around the as discussions on salary revisions for central government employees continue. The Staff Side of NC-JCM has proposed the inclusion of new types of advances in salary and if approved, employees could become eligible for a vehicle advance of up to 10 lakh, along with several other enhanced financial benefits.

The memorandum submitted to the 8th Pay Commission has asked for three new advance facilities for central government employees.

  • Vehicle Advance: The association has proposed that employees be allowed to avail an advance of up to 10 lakh for purchasing a vehicle
  • Festival Advance: It has also recommended that they are provided with a festival advance equivalent to one month’s basic pay
  • Natural Disaster Advance: The employees’ union has also proposed a special advance equivalent to one month’s basic salary for employees affected by natural disasters

Apart from that, the memorandum sought an increase in the maximum limits for computer advances and house-building advances

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Why these advances are being demanded?

On four-wheeler advance demand, the union body said, “At present Four-Wheeler is not considered to be a luxury, rather it has become an essential vehicle for everybody to travel with family. Therefore, the 8th CPC may recommend Four-Wheeler Advance with a maximum of 10,00,000/-. The entire loan may be interest free.”

For Natural Calamity Advance, it noted:”Different parts of the Country are facing Natural Calamity due to unprecedented rains, floods, cyclone and drought etc., Previously, the Central Government Employees were eligible for Natural Calamity Advance. However, the same has been withdrawn in the past. We propose that the Natural Calamity Advance without interest may be restored back. One-month Basic Pay to be recovered in 24 installments may be recommended by the 8th CPC.”

Demanding one-month’s basic salalry as festival advance to employees, it argued: “In the Standing Committee Meeting of the National Council (JCM) it was agreed by the official side to consider the restoration of the Festival Advance. However, the same has not been restored yet. In a country like ours where every religion community have got their festival / celebrations etc., Considering the expenditure involved in all these festival / celebrations, it is proposed that 8th CPC may recommend for restoration of Festival Advance equivalent to one month Basic Pay to be recovered in 10 installments.”



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The 8th Pay Commission is expected to affect more than 1.1 crore beneficiaries, including central government employees and pensioners, as well as their families.

So far, India has witnessed seven pay commissions. The First Pay Commission was established in January 1946, and since then, a new pay commission has generally been constituted every 10 years. The 8th Pay Commission was constituted on 3 November 2025.

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