No.46/(2/)2013-D(Estt./NG)
Government of India
Ministry of Defence
Department of Defence Production

New Delhi, dated 4th March, 2014

To
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.

Sir,
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 sbsorb 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,
sd/-
(Biswajit Sarkar)
Under Secretary to the Govt of India

Source-http://bpms.org.in/documents/piece-work-co-relation-1chh.pdf

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