8th Pay Commission: ₹10 Lakh Car Loan Demand Hits Fiscal Calculus

The 8th Pay Commission received a memorandum from the Staff Side of NC-JCM on Wednesday proposing three new advance facilities for central government employees. The most eye-catching demand: an interest-free four-wheeler advance of up to ₹10 lakh.

The union body argued that a four-wheeler is no longer a luxury but an essential vehicle for family travel. The entire loan, it said, should be interest-free. The memorandum also sought restoration of a Natural Calamity Advance equal to one month's basic pay, recoverable in 24 installments, and a Festival Advance equal to one month's basic pay, recoverable in 10 installments. The commission was also asked to raise the maximum limits for computer advances and house-building advances.

The combined cost of these proposals, if accepted, would add to the government's salary outlay. The 8th Pay Commission, constituted in November 2025, covers 1.1 crore beneficiaries including central government employees, pensioners, and their families. Any increase in advances or pay revision flows directly into consumption.