
The Department of Personnel and Training said overtime for eligible non-gazetted staff still follows Pay Commission rules, not the Code on Wages' double-pay provision.
Central government employees should not expect automatic double pay for working extra hours under the Code on Wages, the Department of Personnel and Training clarified in Parliament.
The issue surfaced on 5 August 2026, when the Lok Sabha asked whether overtime allowance for central government employees had been revised after the Code on Wages took effect. The government also faced a question on extending the benefit to gazetted staff.
DoPT's written response said overtime for eligible non-gazetted employees continues to be governed by the recommendations of the respective Pay Commissions and applicable government orders. That matters because the Code on Wages set a general benchmark. Section 14 of the Code says an employee working beyond a normal working day is entitled to overtime at a rate not less than twice the normal rate of wages.
The Labour Ministry's compliance handbook lists working hours and overtime under the same Section 14 provisions. But that does not mean every central government employee who works extra hours now qualifies for double-rate overtime.
The Centre's response in Parliament indicates the code establishes a floor for overtime pay, while the actual OTA framework determines which employees are eligible. For eligible non-gazetted staff, the applicable OTA remains tied to orders from the Pay Commissions and government decisions.
Hourly OTA rates for eligible central government employees were last prescribed through an Office Memorandum on 19 March 1991, the government said. That 1991 order lays out the payment framework and provides for compensatory leave when overtime is required. The same instructions say overtime should generally be avoided through proper work organisation and, where unavoidable, must be authorised by the competent authority.
For gazetted employees, the question is different. The Lok Sabha had specifically asked whether overtime allowance should be extended to them. The government's response announced no such extension. Gazetted employees currently cannot treat Section 14 as a blanket provision creating an OTA entitlement.
Kirti Jha, the Mint reporter who covered the story, wrote that the wage code's two-times provision should not be interpreted as an automatic revision of existing central government OTA rates. She noted that any change in rates or an extension to excluded categories would require a separate government decision.
The practical takeaway for central government employees is that the existing OTA rules still apply. Eligibility depends on category and service rules, not just the Code on Wages. The March 1991 Office Memorandum remains the operative document for how overtime is paid and when.
A change in OTA rates or an expansion of coverage to gazetted staff would need a fresh order from the government. No such order has been issued.
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