Payment of Overtime, Piece Work Earning & Incentive Bonus on Implementation of instructions of 7th CPC recommendations
Ref: BPMS /OFB / OTA / 43 A (7/2/R)
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.
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.
(M P SINGH)