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 obseved 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.