The All Cs FI & A (Fys)/All Br AOs
Sub: Payment of OTA in r/o NGO/NIE on implementation of 7th CPC
Reference have been received from Br.AOs whether the payment on a/c of OT in r/o NGO/NIEs w.e.f 01.07.2017 is applicable taking consideration of SI No.17 of Appendix I of Govt. Resolution notified by Min of Finance (Deptt of Exp) vide No.11-1/2016-IC dated 06.07.2017. As per the above notification, Overtime Allowance (OTA) is abolished except for operational staff and industrial employees governed by statutory provisions. Ministries/Departments to prepare a list of those staff coming under the category of ‘Operational Staff’ Rates of Overtime Allowance not to be revised upwards.
As per G o I, Min of Defence No.18(5)/2008-D/Civ-II dated 10.05.2011, the OTA is a statutory provision and it would be admissible to the employees covered under the statutory provision of the Factory Act, 1948. Section 2(1) of the Factory Act, 1948 defines the word ‘Worker’ as a person used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process.
In view of the above, all employees engaged inside the factory premises and maintaining the same time schedule as that of the direct industrial workers are to be treated as worker irrespective of their nature of work. Hence the payment of OTA in r/o the NGOs/NIEs of the Ordnance Factory and of Allied Estt of Ordnance Factory may not be stopped w.e.f 01.07.2017 on the basis of the Govt. Resolution notified by Min of Finance (Deptt of Exp) vide No.11-1/2016-Ic dated 06.07.2017
Cofa (fys) has approved.
Asstt.Controller of Accounts (Fys)
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