Non Practicing Allowance NPA for Doctors
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Non – Practising Allowance NPA Definition
Non – practising allowance is given to the Doctors who are working under central government health centres, railways or in other departments of union/state government. A medical officer who is not interested in practicing from home can ask for such allowance. This allowance is considered as equivalent to the Dearness Allowance or Housing Rent Allowance. The amount of non – practicing allowance is calculated on the basis of basic pay plus grade pay. The HRA is calculated on the basis of basic pay plus NPA*. On the other the pension is also calculated on the basis of NPA.
* In seventh pay commission House rent allowance is NOT given on NPA amount.
NPA is also provided to the medical officers who are in leave for higher study. To get the non – practicing allowance, a medical officer must have a minimum medical degree certification. If the candidate wants to pursuit higher studies, he /she can grant for NPA during their study leave.
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Non – Practicing Allowance Calculations (6 CPC)
Non – practicing allowance is calculated on the basis of the basic pay of a medical officer. The basic pay includes the grade pay as well. After 6th pay commission the NPA was set at 25% of the basic pay.
For example:
Let a medical officer draws basic pay of Rs. 15, 600/- and Grade Pay of Rs. 5400/- and the NPA rate is 25%. Then the Non – practicing allowance for the officer will be,
Total Pay: 15,600 + 5400 = 21, 000/-
NPA Rate: 25% of the basic pay scale
NPA amount: 21, 000/- x 25% = 5250/-
Total NPA = 25% of Basic Pay + DA on It = 5250/- + DA on 5250/- 🙂
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Non – Practicing Allowance Calculations (7 CPC)
Non – practicing allowance is calculated on the basis of the basic pay of a medical officer. The basic pay includes the grade pay as well. After 7th pay commission the NPA set at 20% of the basic pay.
For example:
Let a medical officer draws basic pay of Rs. 70000 /- and the NPA rate is 20%. Then the Non – practicing allowance for the officer will be,
NPA amount: 70, 000/- x 20% = 14000/-
Total NPA = 20% of Basic Pay + DA on it = 14000/- + DA on 14000/- 🙂
Tips –
Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?
Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.
Medical Officers are granted Non Practicing Allowance at the rate of 25% of basic pay (6 CPC) subject to condition that pay plus Non Practicing Allowance does not exceed Rs.29500/-p.m. vide this Ministry’s letter No. A.45011/11/97-CHS V dated 7.4.98. Non Practicing Allowance is treated as Pay for all service matters. In other words it is taken into account for computation of D.A., entitlement of T.A./D.A. and other allowances as well as for calculation of retirement benefits in terms of letter No. A.27023/1/87-CHS V dated 22.9.1987.
Source : http://indiankanoon.org/doc/132434160/
Dr (Mrs.) Vimla K. Ajwani W/o Mr. Khushi Ajwani and retired as Regional Director of Health, Ministry of Health, Govt. of India Versus Ministry of Personnel, Public Grievances and Pension, Department of Pension and Pensioners Welfare.
20% of Basic Pay, DA Applicable on NPA (NPA+ DA of NPA)
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Non – Practising Allowance Form (download from attachments)
Non – practising allowance is not a regular allowance like HRA, DA or TA. To receive this allowance one needs to fulfil some criteria. The main criterion to receive the NPA is to have a minimum medical degree from a recognised organisation. Also as per the rules whoever is receiving the NPA shall not be involved in any private practice during their service, leave or after retirement. The NPA is considered to be an important part while calculating HRA and also Pension after the retirement. Of course the non – practising allowance is not for all. To receive this allowance, candidate must apply to the organisation separately.
Form 1 – ONE TIME OPTION to Opt NON PRACTICE
Form 2 – Monthly Certificate of NON PRACTICE