Kathmandu: The Minister for Industry, Commerce, and Supplies, Gauri Kumari Yadav, is preparing to implement a significant policy shift by eliminating the overtime (OT) allowances currently provided to employees of the Nepal Oil Corporation (NOC).
According to the Minister’s secretariat, this move is aimed at curbing millions of rupees in unnecessary expenditures and addressing long-standing irregularities associated with the claim of extra working hours.
By cracking down on these payments, the Minister intends to instil a higher degree of transparency and accountability within the state-owned petroleum duopoly.
The Ministry is currently performing the necessary groundwork to restructure the “Service Facilities” provisions outlined in the Nepal Oil Corporation Employee Administration Regulations of 2006 (2063 BS). The proposed plan seeks to replace the existing overtime compensation model with a more structured “shift system.”
Under this new arrangement, employees will be mobilized across various shifts based on the nature of their work, ensuring that the corporation’s operational needs are met without incurring the additional financial burden of overtime pay.
Official data reveal that NOC has been spending approximately Rs 130 million annually on overtime allowances alone. Minister Yadav has characterized this expenditure as a wasteful drain on the institution’s resources that often facilitates financial malpractice.
The transition to a shift-based system is expected to result in substantial savings in administrative costs and is viewed as a vital step toward maintaining fiscal discipline and modernizing the human resource management practices within the corporation.
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