7th Pay Commission - Over Time Allowance For CG Employees Scrapped

7th Pay Commission – Though the Pay panel recommended upward revision of salaries, it also recommended doing away with some of the allowance contents in the salary structure.

The Central government has decided to discontinue overtime allowance given to most of the central government employees, except operational staff, according to an order issued by the DoPT. This move follows a recommendation of the 7th Pay Commission recommending doing away with some of the allowance contents in the salary structure.

“It has been clarified by the department of expenditure that the government has decided that given the rise in pay over the years, the recommendations of the 7th Central Pay Commission to discontinue OTA for categories other than operational staff and industrial employees who are governed by statutory provisions may be accepted. Accordingly, it has been decided to implement the aforesaid decision… across all ministries/departments and attached and subordinate office of the government of India,” the department of personnel and training said in an office memorandum issued on June 19.

The government reviewed the 7th Pay Commission’s recommendations. The government was considering the Pay Commission recommendation of abolishing the overtime allowance, as the Railways and Defence ministries expenditure under this head more than doubled in seven years ending 2012-13.

Accordingly, it has been decided to implement this decision across all the ministries/departments and attached and subordinate office of the government of India.

The Pay Commission study found that Ministry of Railways and Ministry of Defence civilian employees’ overtime allowance accounts for over 90 percent of all overtime paid by the Centre. The report said that the Ministry of Defence has achieved some success in controlling allowance payments. However, Railways Ministry’s allowance payment is still rising.

The operational staff are all non-ministerial non-gazetted central government employees directly involved in smooth operation of the office including those tasked with operation of some electrical or mechanical equipment.

The administration wing of the ministries/departments concerned have been asked to prepare a list of operational staff with full justification for inclusion of a particular category of staff in the list of operational staff, the ministry said.

It has also been decided to link grant of overtime allowance with biometric attendance of central government employees.

The government has also decided not to revise the rate of overtime allowance or OTA for the operational staff and they would continue to get the amount as per its order issued in 1991.

Read the Official DoPT order regarding over time allowance Conditions And Procedure Imposed By DOPT