The Privatization and Corporatization Board (PCB) has instructed all State-owned enterprises (SOEs) and their subsidiaries to revise their overtime (OT) payment policies as part of broader efforts to strengthen corporate governance, improve financial management and standardise policies across government-owned companies.

In a circular issued on 21 July 2026, the PCB directed companies to amend their OT policies so that overtime payments are made only for work carried out beyond the standard 48-hour working week.

The board said the move aims to establish a uniform approach to managing overtime across all SOEs while promoting greater consistency in employment practices.

For companies that already operate under capped overtime payment arrangements, the PCB has instructed them to compare their existing systems with the new 48-hour policy and adopt the approach that is more financially beneficial and cost-effective for the organisation.

The PCB said the revised policy is expected to improve workforce planning, ensure a more balanced distribution of work among employees and reduce unnecessary reliance on overtime. It added that better control of overtime expenditure would allow companies to redirect resources towards essential operations and service improvements.

The board has instructed SOEs to complete the required amendments to their overtime policies by 30 July 2026, with the revised policies set to take effect from 1 August 2026.

The directive forms part of the Government's wider programme to improve the efficiency and profitability of state-owned enterprises. Earlier, the PCB also instructed SOEs to reduce their workforce by 33 per cent as part of ongoing restructuring efforts aimed at strengthening the financial performance of Government-owned companies.