Overtime Allowance Calculation without Compensatory Nature

Excluding of allowances of compensatory nature (HRA/Transport Allowance/Small Family Allowance etc.) are being used for the purpose of computing Overtime Allowance under the Factories Act, 1948

Overtime Allowance Calculation without Compensatory Nature Allowance

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
LOK SABHA
UNSTARRED QUESTION NO.4638
TO BE ANSWERED ON 24th March, 2021
ORDANCE FACTORY IN KHAMARIA

4638. SHRI RAKESH SINGH:
      Will the Minister of DEFENCE j{kk ea=h
      be pleased to state:

(a) whether the employees of Ordanance factory Khamaria located in Jabalpur are being paid ‘overtime‘ without adding allowances; and
(b) whether it is against the Factory Act;
(c) if so, the details thereof; and
(d) whether the Government proposes to make ‘overtime’ payment to the employees of this ordnance factory according to new procedure?

A N S W E R
MINISTER OF STATE (SHRI SHRIPAD NAIK)
IN THE MINISTRY OF DEFENCE

(a) Ordnance Factory Khamaria located in Jabalpur makes the overtime payment to employees in terms of letter of Principal Controller of Accounts (Fys) No. Pay/Tech-II/73 dated 08.06.2011 which excludes allowances of compensatory nature (HRA/Transport Allowance/Small Family Allowance etc.).

(b) to (d): The instructions issued by the Ministry of Labour and Employment vide O.M. No. Z-16025/81/07-ISH.II dated 27.05.2009 and subsequent instructions issued by Department of Defence vide O.M. No. 14(1)/2000/D(Civ.II) dated 26.06.2009 exclude allowances of compensatory nature (HRA/Transport Allowance/Small Family Allowance etc.) are being used for the purpose of computing Overtime Allowance under the Factories Act, 1948.

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