Payment of Overtime Allowance to Central Government employees - Revised Rates effective from 01-01-2008 clarification thereon

F.No.9(14) E.II(B) / 2010
Government of India
Ministry of Finance
Department of Expenditure
-------

New Delhi the 30th March, 2010.

  

Subject: Payment of Overtime Allowance to Central Government employees - Revised Rates effective from 01-01-2008 clarification thereon.

  

OFFICE MEMORANDUM

  

The attention of this Department has been drawn to an order dt. 27.3.2010 purported to have been issued by this Department, regarding revision of rates of OTA to the Central Government employees. In this regard, the undersigned is directed to clarify that this Ministry has not issued any such order on revision of rates of OTA. Thus, the above cited order is a fake one. No payments of OTA on the basis of this order may be made and if already made in any case, the same may be recovered.

(R.Prem Anand)
Under Secretary to the Government of India

OVER TIME CALCULATION (FOR ORDNANCE EMPLOYEES)

OVER TIME CALCULATION (FOR ORDNANCE EMPLOYEES)

OVERTIME HOURS If a Worker works for more than 44 & 3/4 hours in a week, the Extra hours will be treated as Overtime Hours.

Day	O.T. Hrs.
Monday	8 Hrs.
Tuesday	8 Hrs.
Wednesday	8 Hrs.
Thursday	8 Hrs.
Friday	8 Hrs.
Saturday	4 3/4 Hrs.
Total	44 3/4 Hrs.

Example- 1: Suppose a Worker worked as follows in a Week.

Hence his Overtime hours are: 51 &3/4 - 44 &3/4 = 7 hrs. OT Bonus - 7 hours OT Single - 8 hours DOT - Nil

Day	O.T. Hrs.
Monday	10 Hrs.
Tuesday	8 Hrs.
Wednesday	9 Hrs.
Thursday	10 Hrs.
Friday	10 Hrs.
Saturday	4 3/4 Hrs.
Total	51 3/4 Hrs.

Example- 2: Suppose a Worker worked as follows in a Week.

OT Bonus - 6 hours OT Single - 9 1/4 hours DOT - 4 1/4 hours

Day	O.T. Hrs.
Monday	9 Hrs.
Tuesday	9 Hrs.
Wednesday	9 Hrs.
Thursday	9 Hrs.
Friday	9 Hrs.
Saturday	9 Hrs.
Total	54 Hrs.

Example- 3: Suppose a Worker worked as follows in a Week.

OT Bonus - 5 hours OT Single - 16 1/4 hours DOT - 4 1/4 hours

Day	O.T. Hrs.
Monday	9 Hrs.
Tuesday	9 Hrs.
Wednesday	9 Hrs.
Thursday	9 Hrs.
Friday	Holiday
Saturday	9 Hrs.
Sunday	8 Hrs.
Total	51 3/4 Hrs.

Note: The method of working OT Hours is the Same for both Day Workers and Piece Workers. DAY WORKERS OVER TIME CALCULATION FORMULA: Over Time Pay = BP + GP / 200 Over Time Bonus = BP + GP + 2( DA + HRA ) / 200 Departmental Over Time = DA + TA / 200 PIECE WORK SYSTEM OVER TIME CALCULATION FORMULA: Over Time Pay = BP + GP / 200 Over Time Pay = MINIMUM OF THE SCALE / 200 Over Time Bonus = 1.25 (BP + GP)+ 2 (DA + HRA ) / 200

Over Time Allowance (Recommendation – 6th pay commission)

Over Time Allowance (Recommendation – 6th pay commission)

4.4.1 Prior to Fifth Central Pay Commission, all non-gazetted employees in receipt of monthly basic pay of upto Rs.2200 were entitled to Over Time Allowance for performing duties beyond the designated working hours.

The Fifth Pay Commission had recommended abolition of Over Time Allowance for all categories except the Staff Car Driver, operational staff and industrial employees.

The Pay Commission had also recommended that the staff deployed on weekly off days should be given a compensatory leave rather than any cash compensation in the form of OTA or otherwise. The recommendations of the Fifth CPC were, however, not accepted and status-quo was maintained with notional pay admissible in pre-revised (Fourth Central Pay Commission) pay scales being taken into account for this purpose.

Recommendations 4.4.2 The emphasis of this Report is to herald a proper work culture and result orientation in all the Government offices with increased productivity and efficiency being rewarded in the form of Performance Related Incentive Scheme (PRIS) that will be payable as an extra component over and above the salary. In such a scenario, continued payment of Over Time Allowance will be totally without any justification.

The Commission, accordingly, recommends abolition of compensation in the form of Over Time Allowance or any other similar allowance to any of the Central Government employees except those belonging to the categories of operational staff and industrial employees governed by statute. The categories of operational staff and industrial employees who are governed by statutory provisions will need to be paid this allowance in accordance with the extant rules and instructions because payment of this allowance in their case is a statutory requirement.

Over Time Calculation:Pl.click here