New Delhi: Rajasthan government employees will now be able to get their salary advance through the state government’s Earned Salary Advance Withdrawal Scheme. The Finance Department of the Government of Rajasthan had made the same announcement on May 31. With this, Rajasthan has started extending the facility of advance compensation to its employees, making it the first state in India to do so.
From June 1, it has been implemented for all personnel. According to the official release, the facility will be managed by the Integrated Financial Management System (IFMS) 3.0, which will also be used by other financial institutions and service providers.
State government employees can get multiple advances for a given month, but they cannot exceed 50 per cent of the net monthly salary payable. If the employee accepts advance salary before 21st of a given month, it will be deducted from the employee’s current salary month.
State Government employees who want to use this service need to sign up for IFMS 3.0 with their SSO ID, then use Employee Self Service to give their consent and undertaking to their service provider or financial institution .
They can alternatively go directly to their financial service provider’s website, login and enter their commitment there, and then return to the IFMS website to give their consent using the OTP-based process .
The one-time commitment made by the employee to the financial institution or service provider is good only so long as the specific lender’s contract with the Rajasthan Financial Services Distribution Limited (RFSDL) is still in force.
The special thing is that the government employee will not have to pay interest to get his salary advance. Lenders will only be compensated for transaction fees.
Younger employees are expected to benefit more from the option of paying half their salary in advance. In future, they will not have to borrow money at high interest rates to meet their needs.
Following a request from government employees, the state also reintroduced the Old Pension Scheme (OPS) last year. Dropped New Pension Scheme to implement OPS in the state.