Rajasthan Becomes first State To Allow Government Employees To Withdraw Advance Salary

The state government employee can take multiple advances in a month, but it cannot be more than 50 per cent of the net monthly payable salary.

Chief Minister Ashok Gehlot has approved the 'Earned Salary Advance Drawal Access Scheme' and the facility is available to all employees from June 1.

The initiative:

Employees of the Rajasthan government will now be able to draw their salaries in advance through the Earned Salary Advance Drawal Scheme of the state government. The Finance Department of the Rajasthan government announced the same on May 31. With this, Rajasthan has become the first state in India, to start an advance salary facility for its workers. It has been implemented for all employees from June 1. This facility will be administered through Integrated Financial Management System ( IFMS) 3.0, where the other financial institutions and service providers will be available, read the official announcement.

If the employee takes an advance salary before the 21st of any month, then the same will be recovered from their current salary month.

How to avail this opportunity:

The state government employees who wish to utilise this service must log in to IFMS 3.0 using their SSO ID and submit their consent and undertaking through employee Self Service to their service provider or financial institution. They can also directly log in to the online portal of their financial service provider to submit their undertaking and later visit the IFMS website to submit their consent through OTP based mechanism.

The one-time undertaking submitted by the employee to the Financial Institution/Service Provider will be valid till the completion of the contract of the particular lenders with Rajasthan Financial Service Delivery Limited (RFSDL).

Why is this initiative unique?

The unique aspect is that the government worker won’t be required to pay interest for receiving his compensation in advance. Only the transaction fees will be recovered by the lenders. It is anticipated that small employees will gain more from the option of receiving half of their compensation in advance. They won’t need to borrow money at a high-interest rate going forward to meet their necessities.

Last year, the Old Pension Scheme (OPS) was also reinstated by the state after the request of government employees. It scrapped the new pension scheme to implement OPS in the state.