Abolition of Overtime Allowance in 7th Pay Commission

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Abolition of Overtime Allowance in 7th Pay Commission

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. 

This above information was given by Minister of State for Finance (Expenditure) Shri Arjun Ram Meghwal in a written reply in Lok Sabha on 18.11.2016.

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