AP Outsourcing Employees Salary on Every 1st Day of the Month (GO Ms No 197)

The Finance Department working under the Administration of AP Government has issued a GO stating that "The Government has issued certain instructions to the Controlling Officers, Drawing and Disbursing Officers, Treasury Officers and the Manpower supplying agencies to ensure prompt payment on every first day of month to the Contract / Outsourcing persons"

Remuneration salary for outsourcing employees

This is the big move of the Government on behalf of Outsourcing / Contract persons. In the past, the remuneration bills were submitted to the treasury between  the dates from 5th to 18th. This caused the delay for payment of remuneration to the outsourcing and contract person on every month. Some of the departments were delayed paying the remuneration to the outsourcing persons for 5 months also. If someone raises the questions regarding delaying the payment and the concerned authorities would say some unsatisfied answers. By checkmating all the delays of the remuneration these instructions would be the perfect answer.

The GO MS.no. 197, Finance (HR.I, Plg. & Policy), it: 14.10.2016 describes the following details

Contract and outsourced Personnel - Payment of remuneration to the contract/outsourcing persons - Payment of remuneration on first of the month - Instruction to the Controlling officers, Drawing and Disbursing Officers, Treasury Officers and the Manpower supplying agencies to ensure prompt payment - Relaxation fo treasury control orders - Reg.

FINANCE (HR.I, Plg. & Policy) Department

G.O.Ms. No. 197  , Dated: 14.10.2016

  1. Circular Memo. No. 28346-C/958/A2/SMPC/2008, Finance (SMPC) Department, dated: 30.09.2016
  2. G.O.Rt.No. 4271, Finance (SMPC) Department, dated: 01.11.2008.
  3. G.O.Ms.No. 151, Finance (HE.IPlg & Policy) Department, dated: 08.08.2016.

  1. In the reference first read above, Government has issued instructions and laid down the procedure regarding payment of remuneration to all the contact / outsourced personnel as well as aided instructions on the 1st day of every month promptly. in the Government order second read above, comprehensive guidelines were issued regarding the selection of outsourced personnel.Payment of remuneration, continuation fo services and grievances if any, in government departments. In the GO third read above, orders were issued enhancing the rates of remuneration payable to the outsourced employees from 1st August 2016 with detailed instructions for payment of remuneration.
  2. In spite of the above instructions, some instances have come to the notice of the Government of irregular or delayed payment of remuneration to the contract / outsourced personnel on account of delay in submission of the claim on the part of the agency or due to procedural constraints such as insufficient budget or delay in preferring claims by Drawing and Disbursing officers.
  3. In order to ensure payment of remuneration on the first working day of every month contract and outsourced personnel Government hereby issue the following instructions for strict compliance by all this party agencies supplying the manpower, Drawing and disbursing officers and Treasury authorities concerned.

Four instructions have been issued:

  • Action 1: 20th of each month

  • Outsourced personnel: the bills relating to outsourcing personnel shall be submitted to the DDO concerned with all relevant documents, vouchers and schedules.
  • Authority concerned: The third party agency which supplies outsourced personnel. Establishment section in the case of contract employees.
  • Contract persons:
  • The supervising officers concerned shall furnish the Attendance, absence, leave particulars and the work turn out certificates, whether require shall be furnished to the DDOs.

  • Action 2: 25th of each month

  • Outsourced personnel and contract personnel: Bills should be prepared and submitted to the Treasury Authorities / FAO concerned. The Drawing and Disbursing officers shall take the action.

  • Action 3: 28th of each month

  • Outsourced personnel: The bills shall be scrutinised encased. Necessary cheque payable on the first working day of the next month, be prepared and delivered to Third party Agency through DDO Concerned. The Treasury authorities/ PAO concerned.
  • Contract personnel: The bills shall be scrutinised and passed and the remuneration has to be credited to the bank account of the DDOs concerned. The Treasury authorities/ PAO concerned.

  • Action 4: First Day/ First working day of every month

  • The remuneration is paid to the bank accounts of the outsourced personnel contract employees. The third party agencies. 
  • The DDOs shall take necessary action to credit the remuneration to the bank accounts of the contract personnel. The DDOS concerned.

The above schedule shall be scrupulously followed by al the concerned authorities and any deviation will be viewed seriously and the officers concerned will be held responsible.
  1. In order to prevent rejection of bills which are otherwise eligible but could not be passed for want of sufficient budget provision under 300 other contractual services, the Government hereby relax te Treasury control on the detailed head of account "300 Other Contractual Services" for the financial year 2016-17 under all the Major Heads o Account. The Controlling Officers shall submit6 necessary proposals for the provision of necessary funds either by way of reappropriation of savings within the grant or provision of additional funds through supplementary grants at the appropriate time without fail.
  2. All other conditions relating to the admissibility of the claim shall be adhered to and the Treasury officers /PAO shall ensure proper scrutiny of the claims.
  1. The agencies shall disburse remuneration to the outsourced personnel by the first day of every month as instructed at Para 3 (a) above, In the case of the default, 1% of total claim be levied as a penalty for delay in payment beyond three working days. The penalty shall be recovered from the claim relating to the succeeding month.
  1. In the case of recurrence of delayed payments on more than three occasions, the agency shall be blacklisted. It is the responsibility of the officer who entered into the agreement with the agency, to ensure prompt disbursements by the agency to the outsourced  personnel and to impose penalty otherwise.
  2. The agencies shall not pass on penalty so imposed on to the outsourced personnel or deduct any amount from the remuneration other than the statutory obligations.
  3. The existing contracts shall be revised only incorporation the above penal provision in the contract and a new contract shall be executed for the remaining period of the contract. The controlling authorities shall the  prompt action in this regard.
  4. All the departments of Secretariat. Head of Department s shall follow the above instructions scrupulously. They shall communicate this order to all the subordinate officers under their control for strict compliance.

Ajeya Kallam
Special Chief Secretariat to Governemnt 

Next Post »