The Privatization and Corporatization Board (PCB) has directed state-owned enterprises to amend policies regarding overtime pay and prevent unnecessary overtime work by company employees.

PCB stated that companies were instructed today to alter their overtime payment policies so that overtime pay is granted solely for hours worked in excess of 48 hours per week.

PCB further noted that this change was brought about to strengthen the financial system and standardize policies across all companies.

PCB instructed companies that currently set a high threshold for overtime compensation to compare their existing policies against the new directive and choose the most advantageous and cost-effective approach.

According to PCB, this change is expected to ensure that company operations proceed with proper planning, tasks are distributed equitably, and unnecessary overtime work is minimized.

PCB also stated that managing overtime expenses prudently will allow companies to utilize additional resources toward improving essential operations and services.

Consequently, PCB directed companies to make the necessary revisions to their overtime payment policies before the 30th of this month and begin implementing the amendments starting on August 1.

As PCB issued these directives, the board had previously instructed state-owned enterprises to reduce their staff count by 33 percent in an effort to streamline operations and ensure these companies run profitably.