Click on Settings > Configuration > Attendance > Overtime Policy > Add New to Setup Policy for overtime and name the policy under the Policy Name section as shown below
Define whether the employees can themselves request Extra hours or not by enabling/disabling the toggle button
Select the hourly rate - Single Rate or Custom Rate
At a time, either the Single Rate OR the Custom Rate can be selected.
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 days 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
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 besides the employee name if he/she has already been assigned to some other overtime policy as shown above.
Once reviewed, click on Save