Overtime
Overtime rules can vary significantly by country, state, or region, as they are usually defined by labor laws. Employees who work more than a certain number of hours are eligible for overtime pay.
You can configure overtime or double overtime on a daily or weekly basis. The default overtime rate is 1.5 times, and the double overtime rate is 2 times. You can change these rates based on your requirement.
You can configure overtime or double overtime on a daily or weekly basis. The default overtime rate is 1.5 times, and the double overtime rate is 2 times. You can change these rates based on your requirement.
To configure overtime:
- Click to the Settings icon in the top-right corner, which will open the Settings window.
- Click Pay Rules in the Time and Attendance tab.
- Select Edit on the specific pay rules you want to make changes to.
- Click the Overtime tab and configure rate and hours for daily, weekly, or holiday, according to your needs.
- Click Save.
Case 1: Daily overtime configuration
Daily Overtime after 8 hours in a day
Overtime rate is 1.5
Example:
Let's say John works in a retail store. His base pay is $30 per hour, and he works 10 hours on Monday. However, his retail store has fixed a special pay rate for working apart from the usual work hours. His store manager has a fixed overtime rate of 1.5. Calculate and analyze the total wage.
Let's say John works in a retail store. His base pay is $30 per hour, and he works 10 hours on Monday. However, his retail store has fixed a special pay rate for working apart from the usual work hours. His store manager has a fixed overtime rate of 1.5. Calculate and analyze the total wage.
Calculations:
Hourly Rate: $30
Hourly Rate: $30
Total hours worked : 10 hrs on Monday
Regular hours: 8 hrs
Overtime hours: 2 hrs
Regular wage = 8 hrs x $30 = $240
Overtime wage = 2 hrs x ($30 x 1.5) = $90
Total wage = $330
---
Case 2: Weekly overtime configuration
Weekly overtime after 40 hours
Overtime rate is 1.5
Example:
Let's say James works in a restaurant. His base pay is $30 per hour, and he works 50 hours a week. However, his restaurant has fixed a special pay rate for working apart from the usual work hours. His restaurant manager has a fixed overtime rate of 1.5. Calculate and analyze the total wage.
The time split is as follows:
Days | Start Time | End Time | Total working hours |
Monday | 09:00 hrs | 17:00 hrs | 8 hrs |
Tuesday | 09:00 hrs | 19:00 hrs | 10 hrs |
Wednesday | 09:00 hrs | 21:00 hrs | 12 hrs |
Thursday | 09:00 hrs | 19:00 hrs | 10 hrs |
Friday | 09:00 hrs | 19:00 hrs | 10 hrs |
Calculations:
Hourly Rate: $30
Total hours worked: 50 hrs
Reg hours: 40 hrs
Overtime hours: 10 hrs
Reg wage = 40 hrs x $30 = 1200$
Overtime wage = 10 hrs x ($30 x 1.5) = $450
Total wage = $1650
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