Rajasthan government introduces advance salary privilege, sets precedent in India

Rajasthan government leads the way in employee welfare, offering interest-free advance salary privilege to state employees


The Rajasthan government has launched earned salary advance drawal scheme, allowing state government employees to access their salaries in advance. Rajasthan has become the first state in India to implement this progressive initiative, effective from June 1. The scheme, administered through the integrated financial management system (IFMS) 3.0, provides employees with access to various financial institutions and service providers.

Under the new scheme, state employees can request multiple advances within a month, up to a maximum of 50 per cent of their net monthly salary. Notably, these advances are interest-free, offering significant financial relief to employees. If an employee opts for an advance salary before the 21st of the month, the corresponding amount will be deducted from their subsequent salary, ensuring a streamlined recovery process.

To avail themselves of this privilege, state government employees must log in to IFMS 3.0 using their SSO ID and submit their consent and undertaking through the employee self service portal. Alternatively, they can directly visit the online portal of their chosen financial service provider to complete the necessary formalities. Employees must then provide their consent through a secure OTP-based mechanism on the IFMS website. This simplified process enables convenient authoriszation and utilisation of the advance salary facility.

The unique aspect of this scheme is that employees are not required to pay interest on the advanced salary. Only transaction fees will be recovered by the lenders. This initiative is expected to greatly benefit small employees, as it eliminates their need to rely on high-interest loans to meet their financial needs.

This development follows the reinstatement of the old pension scheme (OPS) last year, addressing the requests of government employees. By replacing the new pension scheme with OPS, the state government further enhances the financial relief and security provided to its employees.

With this progressive measure, Rajasthan sets a precedent for employee welfare, emphasising financial well-being and flexibility. 

It is anticipated that other states in India may follow suit, recognising the importance of prioritising the financial needs of their workforce. This initiative stands as a significant step towards empowering government employees and improving their overall quality of life.

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