Overtime Allowance for Central Government Employees: What the Government Said in Lok Sabha
The Government of India has clarified the present position regarding Overtime Allowance (OTA) for Central Government employees and whether the rates of overtime have been revised in accordance with the Code on Wages, 2019.
The matter was raised in the Lok Sabha through Unstarred Question No. 2775, answered on 5 August 2026. The question specifically sought clarification on the payment of overtime allowance to Non-Gazetted Central Government employees and the applicability of Section 14 of the Code on Wages, 2019.
According to the Government’s reply, the existing system of Overtime Allowance for eligible Non-Gazetted Central Government employees continues to be governed by the applicable government orders and decisions taken on the recommendations of the Pay Commissions.
What is Overtime Allowance (OTA)?
Overtime Allowance (OTA) is an allowance paid to eligible government employees for performing authorised duties beyond their prescribed working hours, subject to the applicable rules and conditions.
However, OTA is not uniformly applicable to every Central Government employee. Its payment depends on the employee’s category, nature of duties and the rules governing the particular establishment.
Government’s Latest Clarification on Overtime Allowance
The issue was raised by Shri Radhakrishna in Lok Sabha through Unstarred Question No. 2775.
The Government was asked three important questions:
- Whether overtime allowance paid to Non-Gazetted Central Government employees is being calculated at the rate prescribed under Section 14 of the Code on Wages, 2019, namely not less than twice the normal rate of wages.
- Details of the existing formula and rates for payment of overtime allowance and the date from which these rates have remained unchanged.
- Whether there is any proposal to extend overtime allowance to Gazetted Central Government employees, who are presently excluded from such payment.
The Government has provided clarification on all three points.
Overtime Allowance Under the 7th Pay Commission
The Government stated that Over Time Allowance is regulated for eligible Non-Gazetted Central Government employees.
The response referred to Department of Expenditure Office Memorandum No. A-27016/03/2017-Estt. (AL), dated 19 June 2018.
According to the Government, this decision was taken on the recommendations of the 7th Central Pay Commission.
The 7th Pay Commission recommendations resulted in the discontinuation of OTA for certain categories of employees, while retaining it for employees covered by specific provisions.
The Government specifically stated that OTA was discontinued for all categories of employees except Operational & Industrial employees governed by statutory provisions.
Who is eligible for OTA?
The Government’s reply indicates that OTA is applicable to eligible Non-Gazetted Central Government employees, subject to the relevant rules.
Importantly, the payment is not automatically applicable to all Non-Gazetted employees. The employee must fall within the category covered by the applicable provisions.
Have Overtime Allowance Rates Been Revised?
One of the most important points in the Lok Sabha reply concerns the existing OTA rates.
The Government referred to Office Memorandum No. 15012/3/86-Estt. (Allowance), dated 19 March 1991, which prescribed the hourly rates of OTA payable to eligible Central Government employees.
The Government clearly stated that:
The rates of Overtime Allowance have not been revised.
The response further explains that, as per decisions taken by the Department of Expenditure on the recommendations of the Pay Commissions, the existing rates continue to remain unchanged.
Therefore, the latest parliamentary reply does not announce any increase or revision in the existing OTA rates.
Is Overtime Allowance Now Twice the Normal Wage Under the Code on Wages, 2019?
This is an important issue because Section 14 of the Code on Wages, 2019 provides for overtime payment at a rate not less than twice the normal rate of wages in the circumstances covered by the provision.
However, the Lok Sabha question asked specifically whether the OTA paid to Non-Gazetted Central Government employees is being calculated according to this provision.
The Government’s response did not announce that the existing Central Government OTA rates have been revised to twice the normal rate under the Code on Wages, 2019.
Instead, the Government reiterated that OTA for eligible Non-Gazetted Central Government employees is regulated under the existing government orders and decisions of the Department of Expenditure.
Therefore, employees should not interpret the parliamentary reply as an announcement of a new double-rate OTA for Central Government employees.
Will Gazetted Central Government Employees Get Overtime Allowance?
The Lok Sabha question also asked whether the Government is considering extending OTA to Gazetted Central Government employees.
The Government’s answer was that:
Any decision on allowances, including Overtime Allowance, is taken by the Department of Expenditure on the recommendations of the Pay Commission.
The reply does not announce any new proposal or decision to extend OTA to Gazetted employees.
Thus, as of the date of the Lok Sabha reply, there is no announcement of a general extension of OTA to Gazetted Central Government employees.
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Key Points at a Glance
| Issue | Government’s Position |
| OTA for eligible Non-Gazetted employees | Regulated under existing rules |
| 7th Pay Commission | OTA discontinued for certain categories |
| Operational & Industrial employees | OTA retained where governed by statutory provisions |
| Existing OTA rates | Not revised |
| Reference for existing hourly rates | OM dated 19 March 1991 |
| Code on Wages, 2019 | No new OTA rate announced in this reply |
| Double-rate OTA | No announcement of implementation for Central Govt OTA |
| OTA for Gazetted employees | No extension announced |
| Authority for allowance decisions | Department of Expenditure based on Pay Commission recommendations |
| Lok Sabha Question | Unstarred Question No. 2775 |
| Answered on | 5 August 2026 |
What Does This Mean for Central Government Employees?
The latest Lok Sabha reply is particularly important for employees who were expecting an increase in overtime payment following the implementation of the Code on Wages, 2019.
At present, the Government has not announced a revision of the existing Central Government OTA rates through this parliamentary reply.
The existing framework continues to operate according to the relevant Government orders and Department of Expenditure decisions.
Employees who are eligible for OTA should therefore continue to follow the rules applicable to their department, establishment and category of employment.
Important Documents Referred to by the Government
The Government’s reply specifically mentions two important Office Memoranda:
1. Department of Expenditure OM dated 19 June 2018
OM No. A-27016/03/2017-Estt. (AL)
This relates to the decision taken following the recommendations of the 7th Central Pay Commission concerning Overtime Allowance.
2. Department of Expenditure OM dated 19 March 1991
OM No. 15012/3/86-Estt. (Allowance)
This OM prescribed the hourly rates of OTA payable to eligible Central Government employees.
The Government has stated that these rates have not been revised.
Will OTA Rates Increase in the Future?
The latest answer does not provide any indication of an immediate revision of OTA rates.
The Government has stated that decisions concerning allowances, including OTA, are taken by the Department of Expenditure based on the recommendations of the Pay Commission.
Therefore, any future revision would depend upon a fresh decision by the competent authority.
Conclusion
The Government’s Lok Sabha reply dated 5 August 2026 provides an important clarification regarding Overtime Allowance for Central Government employees.
The key takeaway is that existing OTA rates for eligible Central Government employees have not been revised. The Government continues to regulate OTA under the applicable rules and Department of Expenditure orders.
The reply also does not announce implementation of a new double-rate overtime payment under Section 14 of the Code on Wages, 2019, nor does it announce a general extension of OTA to Gazetted Central Government employees.
Central Government employees should therefore distinguish between the provisions of the Code on Wages, 2019 and the specific rules governing OTA for Central Government employees.
Frequently Asked Questions (FAQs)
1. What is the latest update on OTA for Central Government employees?
The Government has clarified in Lok Sabha that the existing Overtime Allowance rates for eligible Central Government employees have not been revised.
2. Is OTA applicable to all Central Government employees?
No. OTA is applicable only to eligible categories covered by the relevant rules and provisions.
3. Were OTA rates revised after the 7th Pay Commission?
The Government’s latest reply states that the existing rates have not been revised.
4. Are Central Government employees entitled to double overtime under the Code on Wages, 2019?
The Lok Sabha reply does not announce implementation of a new double-rate OTA for Central Government employees.
5. Will Gazetted employees receive Overtime Allowance?
No general extension of OTA to Gazetted Central Government employees has been announced in the reply.
6. When was the present hourly OTA rate prescribed?
The Government referred to OM No. 15012/3/86-Estt. (Allowance), dated 19 March 1991, which prescribed the hourly OTA rates.
7. Who decides matters relating to Overtime Allowance?
According to the Government, decisions on allowances, including OTA, are taken by the Department of Expenditure on the recommendations of the Pay Commission.