PCB Directs State-Owned Companies to Standardise Overtime Payments

The Privatisation and Corporatisation Board (PCB) has instructed state-owned companies and their subsidiaries to standardise their overtime payment policies by introducing a common eligibility threshold.

Under the new directive, companies must revise their existing policies so that overtime is paid only to employees who work more than 48 hours per week. PCB said the measure is intended to improve the management of state-owned enterprises, strengthen financial systems and establish consistent overtime practices across all companies.

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The board stated that companies with existing overtime limits must compare their current policies with the new 48-hour threshold and adopt whichever approach is more financially efficient.

According to PCB, the revised policies are expected to improve workforce planning, promote a more balanced distribution of work among employees and reduce unnecessary expenditure.

State-owned companies have been instructed to complete the required policy changes by 30 July, with the revised overtime rules scheduled to take effect from 1 August.

The directive follows an earlier instruction from PCB requiring state-owned companies to reduce their workforce by 33 per cent within three months as part of broader efforts to improve operational efficiency and financial performance.