Overtime Allowance (OTA) as per Revised Pay to the Employees of Defence Industrial Establishments – BPMS

Ref:BPMS/MOD/OTA/43A(7/2/R)

Dated: 03.01.2017

To,

The Deputy Secretary (CP),

Govt of India, Min of Defence,

‘B’ Wing, Sena Bhawan,

New Delhi – 110011

Subject: Payment of Overtime Allowance (OTA) as per revised pay to the employees of Defence Industrial Establishments under Factories Act, 1948 consequent to implementation of the 7th CPC recommendations.

Respected Sir,

With due regards, your attention is invited to the Anomalies Committee meeting held on 26.12.2016 under the Chairmanship of AS(J) Shri J Rama Krishna Rao wherein we have reflected our concern over the delay in the revision of statutory nature allowance (Over Time Allowance under the Factories Act, 1948) in defence establishments.

In turn, the AS(J) pleased and instructed to resolve the matter of the payment of Over Time Allowance as per revised pay consequent to implementation of 7th CPC recommendations.

Meanwhile, OFB has already submitted its views on the subject matter which is contrary to the statutory provisions and the copy of the OFB’s letter is enclosed for your perusal.

Therefore, you are requested to take necessary action so that the issue of the payment of overtime allowance in defence establishments on the revised pay of 07th CPC may be resolved without further delay.

Thanking you.

Sincerely yours

Sd/-

(MUKESH SINGH)

Secretary/BPMS &

Member, JCM-II Level Council (MOD)

Source:http://bpms.org.in/documents/ota-03012017-9139.pdf

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ABOLITION OF OVERTIME ALLOWANCE – LOK SABHA Q&A

ABOLITION OF OVERTIME ALLOWANCE – LOK SABHA Q&A

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF EXPENDITURE

LOK SABHA

UNSTARRED QUESTION No 492

TO BE ANSWERED ON FRIDAY NOVEMBER 18, 2016

KARTHIKA 27, 1938 (Saka)

ABOLITION OF OVERTIME ALLOWANCE

492.     SHRI G. HARI:

Will the Minister of FINANCE be pleased to state:

whether the expenditure on overtime allowance provided to Government employees had increased from Rs.797 crore to Rs.1629 crore during 2012-13 and if so, the details thereof; and

whether the Government is considering to abolish overtime allowance in Government offices and if so, the details thereof?

ANSWER

MINISTER OF STATE FOR  FINANCE (EXPENDITURE)

(SHRI ARJUN RAM MEGHWAL)

Yes Sir. The expenditure of Rs.796.90 crore in 2006-07 was excluding the expenditure on overtime allowance in respect of employees of Union Territories whereas the expenditure of Rs. 1629.02 crore during year 2012-13 is including the expenditure in respect of employees of Union Territories.

The Seventh Central Pay Commission has recommended to abolish OTA (except for operational staff and industrial employees who are governed by statutory provisions) and in case the Government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels. Recommendation of the 7th CPC on allowances are yet to be finalised.

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Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of Instructions of 7th CPC Recommendations regarding.

BHARATIYA PRATIRAKSHA MAZDOOR SANGH

(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)

(AN INDUSTRIAL UNIT OF B.M.S.)

(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

CENTRAL OFFICE: 2-A, NAVEEN MARKET, KANPUR - 208001

Ref: BPMS /OFB / OTA / 43 A (7/2/R)

Dated: 30.07.2016

To,

The DGOF & Chairman,

Ordnance Factory Board,

10-A, S. K. Bose Road,

Kolkata – 700001

Kind Attention: (Shri S K Singh, Director/IR, OFB)

Subject: Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of Instructions of 7th CPC Recommendations regarding.

Respected Sir,

With due regards, I would like to invite your kind attention to the Section 59 of Factories Act, 1948, which states that a worker shall be entitled to wages at the rate of twice of his ordinary rate of wages, in respect of Overtime work and as per Sub Section (2) of Section 59 the ‘ordinary rate of wages’ means the basic wages plus such allowances, including the cash equivalent of the advantage accruing through the concessional rate to workers of food grains and other articles, as the worker is for the time being entitled to but does not include a bonus and wages for overtime work.

Now, Govt of India, Min of Finance (Department of Expenditure) has passed & adopted the Resolution (No. 1-2/2016-IC, Dated 25.07.2016) regarding 07th CPC recommendations on revised pay structure with effect from 01.01.2016.

Hence, all the industrial & non-industrial employees of Ordnance & Ordnance Equipment Factories, who are deputed on overtime, have become eligible for payment of overtime allowance on the revised pay under the CCS (Revised Pay) Rules, 2016 in compliance of statutory order of Section 59 of the Factories Act, 1948.

It is worth to mention here that regarding fixation of pay and payment of arrears, instructions have been issued vide Implementation Cell, 7th CPC O.M. No. 1-5/2016-IC, Dated 29.07.2016.

Therefore, you are requested to issue necessary directives for the payment of overtime allowance on the revised pay of 07th CPC and also to co-relate the piece work & incentive accordingly.

Thanking you

Sincerely Yours

Sd/-

(M P SINGH)

General Secretary

Source:http://bpms.org.in/documents/overtime-revision-mqvg.pdf

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7th Pay Commission: Abolish Overtime for Govt. Staff, Pay Panel Recommends

Overtime paid by Railways and Defence ministries constitutes 90% of total

The Seventh Pay Commission has recommended that overtime allowance, except for operational staff and industrial employees governed by statutory provisions, should be abolished, after data showed that the expenditure under the head for the Railways and Defence ministries more than doubled in seven years ending 2012-13.

A committee of secretaries headed by Cabinet Secretary P. K. Sinha is reviewing the Commission’s recommendations. Overall, the overtime paid by the Government increased from Rs.797 crore to Rs.1,629 crore in the period, prompting the Commission to observe that government offices need to increase productivity and efficiency; and recommend “stricter” control on the Centre’s expenditure under the head.

“Government employees, like every one else, should be paid for results, not to spend time in the office…but overtime is mandated by law in organisations like railways and in such cases payments must be realistic and not frozen in time and hence the recommendation to increase them by 50 per cent,” economist and Seventh Pay Commission Member Rathin Roy told The Hindu .

Overtime allowance paid in just the Ministry of Railways and to civilian employees in the Ministry of Defence, accounts for more than 90 per cent of all overtime paid by the Centre, the Commission found. While the Ministry of Defence has achieved some success in controlling payment of the allowance, the efforts of the Railways Ministry have not borne fruit as yet. As a percentage of pay, overtime allowance is declining in the Ministry of Defence but is on the rise in the Ministry of Railways. The allowance decreased to 6.54 per cent of pay in 2012-13 from nearly 8 per cent in 2006-07 in the Ministry of Defence. It increased to 2.58 per cent in the Ministry of Railways in 2012-13 from 2.09 per cent in 2006-07.

Rising faster

Overtime paid to employees in the Railways is rising faster than even their pay. The compounded annual growth rate of 17.2 per cent for overtime in the ministry exceeds that of pay which is 13.2 per cent. If the government decides to continue with the allowance for those categories of staff for which it is not a statutory requirement, then it should be increased by 50 per cent, the panel recommended.

In the Ministry of Railways, overtime paid to employees is rising faster than even their pay

Read at: The Hindu

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7th CPC allowed Overtime Allowance (OTA) to continue in Industrial Establishments of Defence and Railway

Recommendations of Overtime Allowance (OTA) in 7th Pay Commission

7th CPC allowed Overtime Allowance (OTA) to continue in Industrial Establishments of Defence and Railway

Overtime Allowance (OTA) is granted to government employees for performing duties beyond the designated working hours.

Presently, OTA is paid in several ministries/ departments, up to a certain level, at varying rates.

Though the III, IV V and VI Pay commission recommended to abolish the Over time allowance except where it is a statutory requirement, it was continued in some departments even when it is not a statutory requirement.

But JCM-Staff Side has demanded that OTA should be paid to all government employees who are asked to work beyond office hours, on the basis of actual Pay, DA and Transport Allowance.

The commission observed that 90% of total expenditure on Over time allowance is spent in Defence and Railway. So the recommendation on Over Time Allowance is expected very much by the employees of these two Ministries

The 7th pay commission suggested in its recommendation that

“…..government offices need to increase productivity and efficiency, and recommends that OTA should be abolished (except for operational staff and industrial employees who are governed by statutory provisions), at the same time it is also recommended that in case the government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels”.

A stricter control on OTA expenditure is also suggested

So the employees of Ministry of Railways and Defence breathed sigh of relief as the Pay commission recommended to continue the Over time allowance.

Source: http://www.gservants.com/

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