How overtime is calculated and paid

Overtime is not entered on its own screen. The system works it out from each attendance day and payroll pays it from the register. This article explains where the hours come from, how they are priced, and which settings control them.

Where overtime hours come from

On a working day, overtime is the time worked outside the scheduled hours of the employee's shift:

• the minutes between the scheduled end time and the clock-out, and

• the minutes between an early clock-in and the scheduled start time.

Lateness does not cancel overtime. An employee who arrives an hour late and stays an hour after the end is recorded as late by an hour and as having one hour of overtime. The lateness is charged separately as missing time.

For an employee with no shift, the scheduled day starts at the standard start time in HR Settings and lasts for the working hours per day set there.

Overtime hours are calculated only while Enable overtime is on in the Overtime section of HR Settings (People › HR Admin › Settings, tab Working & Attendance). When it is off, no overtime is recorded on any day.

Work on a rest day or holiday

A day outside the shift's working days, or a public holiday, has no schedule to be over. Every hour worked that day is recorded as rest-day work, not as overtime, and is paid at the rest-day rate, which is double the hourly rate by default. A single day is never counted in both.

Check the hours

1. Open People › Time & Attendance › Attendance Management.

2. Filter the register for the employee and the period.

3. Read the Overtime column. The employee's profile and payslip show the same figures.

If a day's overtime is wrong, correct the clock times on that day (see record and correct attendance). The day is graded again and the overtime follows. There is no separate overtime approval: the hours in the register are the hours payroll pays.

How payroll prices overtime

When a payroll run is processed, the system adds up the overtime hours of the period and calculates:

Overtime pay = overtime hours × hourly rate × overtime multiplier

• Hourly rate = the basic salary in force for the period ÷ (working days per month × 8 hours). With the standard 30-day month, that is the basic salary ÷ 240.

• Overtime multiplier = Overtime rate multiplier from HR Settings (1.5 by default), unless the employee has their own.

Example: a basic salary of 6,000 gives an hourly rate of 25. Ten overtime hours at 1.5 pay 10 × 25 × 1.5 = 375 on the payslip.

Rest-day hours use the same hourly rate with the rest-day multiplier.

Settings that control payment

• Include overtime in salary in HR Settings decides whether overtime is paid with the salary at all.

• On an employee's record, Pay overtime with salary and Overtime rate multiplier (between 1 and 5) override the company values for that person. Leave them on the company setting unless the employee is paid differently.

Common questions

The register shows overtime, but the payslip has none. Why? Overtime is paid only when it is included in salary, either in HR Settings or on the employee's own record.

Does the working hours per day setting change the hourly rate? No. The overtime hourly rate always uses 8 hours per day.