Correlation of Piece Work Rates after implementation of 6th CPC pay scales - MoD Orders

Ministry of Defence issued orders on correlation of Piece Work Rates after implementation of 6th CPC pay scales for Ordnance Employees...

Government of India
Ministry of Defence
Department of Defence Production

New Delhi, dated 4th March, 2014

The Secretary,
Ordnance Factory Board,
10A, S.K.Bose Road,
Kolkatta - 700001

Sub: Correlation of Piece Work Rates after implementation of 6th CPC pay scales.

I am directed to state that the question of Correlation of piece work rates in the Ordnance Factories Organisation to the revised pay scales, on the basis of recommendations of the 6th Central Pay Commission has been under consideration of the Government for some time and the President has been pleased to decided on the implementation of the new scheme of correlation of piece work rates as indicated below :-

i) Piece work rates would be correlated to the minimum of the pay band-I + GP Rs.1900 i.e. Rs.5200 + Rs.1900 = Rs.7100/- for all category/grades of workers deployed on piece work system.

ii) The difference between the actual basic pay of a worker and Rs.7100/- shall be paid to him as a separate element as "Incremental Pay".

iii) The production warrants will be issued in terms of times without 25% built-in incentive. However, as per existing procedure relevant to preparation of wage rolls for piece workers and labour costing, output hours will be reckoned as standard Man Hours (SMH) plus 25% built in incentive.

iv) The time estimates in all the existing labour rate forms will be reviewed as per production requirement.

v) The existing ceiling of 75% on piece work profit will continue.

2. The above orders will take effect from the date of issue of this letter.

3. OFB should made all out efforts to absorb the additional cost to the extent possible by periodical revision in material estimate and labour estimate. OFB must scrupulously follow the practice of revision of rates whenever there is change in design, material composition and introduction of latest machines.

4. Operational instructions will be issued by Ordnance Factory Board.

5. This issue with the concurrence of the Defence Finance vide their diary No.97/IF/DP-I dated 4.3.2014.

Yours faithfully,
(Biswajit Sarkar)
Under Secretary to the Govt of India


Clarification order issued on 22nd April 2014...(Updated on 23.4.2014)

OFB's clarification on correlation of Piece Work

Instruction No.3408/A/A

Government of India
Ministry of Defence
Ordnance Factory Board
10A, S.K.Bose Road
Kolkata- 700 001
Dated: 22.4.2014

The Sr. General Manager/General Manager
Ordnance & Ordnance Equipment Factories

Sub: Correlation of Piece Work rates on implementation of 6th CPC Pay Scales
Ref: OFB Instruction of no. 3400/A/A dated 11th March 2014

In continuation of OFB Instruction referred above, with reference to para no. 4.0 of OFB Instruction No. 1372/A/A dated 12-04-1991, the following clarification is issued for payment of incentive bonus to the maintenance workers of Ordnance and Ordnance Equipment Factories in 6th CPC pay scales w.e.f. March 2014:

Since the piece work rates for all categories/grades of workers are correlated at Rs.7100/- in the 6th CPC pay scales w.e.f. march, 2014 essential maintenance workers covered under MoD letter No. 754/A/A/1623/11/D(Fy-I) dated 31-07-1972 may be paid incentive bonus at the rate of 50% of the average piece work profit percentage, earned by piece workers in the particular production shop or the whole factory as the case may be. This will calculated as follows:

(7100/N-(S+H) x No. of days + 7100/200 x Total No. OT Hrs worked ) x 50% of the average profit % of the production section or of the whole factory as the case may be

Where, N= Total number of days
S= No. of Sundays
H=No. of Holidays

(Arti C.Srivastava)

Copy to:
Pr.Controller of Accounts(Fys), Kolkata


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