Overtime

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.
 
To configure overtime:
  1. Click to the Settings icon in the top-right corner, which will open the Settings window.
  2. Click Pay Rules in the Time and Attendance tab.
  3. Select Edit on the specific pay rules you want to make changes to.
  4. Click the Overtime tab and configure rate and hours for daily, weekly, or holiday, according to your needs.
  5. 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.

Calculations:
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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