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Setting up an Overtime Policy

Updated yesterday

This article describes how you can set up an overtime policy to capture the additional hours worked by employees to be assigned to payroll.

Step 1

Click on Settings > Attendance > Overtime Policy > Add New to Setup Policy for overtime and name the policy under the Policy Name section as shown below

Step 2

Define whether the employees can request Extra hours or not by enabling/disabling the toggle button

Step 3

Define whether managers 'without payroll roles' can see the net amount of overtime requested by employees or not, by enabling/disabling the toggle button.

Step 4

Select the hourly rate - Single Rate or Custom Rate

Note:

  • At any given time, you can choose either the Single Rate or the Custom Rate.

  • The custom rate provides four options for configuring the overtime rate based on business needs: weekdays, weekends, public holidays, and days off. The overtime rate configuration option for day offs is only applicable to shift employees.

  • In both Single Rate and custom rate, two types are available for overtime rate configuration: Unified or split.

  • ‘Unified' is preferred when a single overtime rate applies, while 'Split' is preferable when the overtime rate needs to be configured as a combination of different salary types (e.g., x% of (basic salary + allowance) + y% of (basic salary)).

  • The rate multiplier will be 1.5 by default.

  • The rate multiplier is an open numeric field with a min value of 0.1 and no max value. Decimals will be rounded off to 2 values.

  • Salary component will have 2 selections = 'Basic Salary' OR 'Basic Salary + Allowances'

  • The default 'salary component' selected will be 'Basic Salary'

  • The day's calculation will have 3 selections - Actual Calendar Days, Actual Working Days, and Custom Days.

  • By default, the 'days calculation' will be Custom Days with the default days value being 30 days which can be edited as required.

  • The default 'number of hours' value will be 8 hours

The formula for Daily Rate = Salary Component (Basic OR Basic + Allowances) / Days (Custom days OR Calendar days OR Working days) * Working hours per day

Step 5

Assign employees to the overtime policy by clicking on the employee name or the '+' sign on the left-hand side to assign him/her to the policy

Note: At a time, a single employee can be assigned to only one overtime policy. You will see the tag Unavailable beside the employee's name if he/she has already been assigned to some other overtime policy as shown above.

Step 6

Once reviewed, click on Save

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