Before you start 

To setup overtime configuration: 

1. Navigate to the Settings menu in the top-right corner.
   
2. Select Pay Rules under the Time & Attendance section.
   
3. Select the pay rule you wanted to configure.
   
4. Enter the overtime rate and double time rate.
   
5. Click on the overtime rate after hours check box and enter hours for overtime for daily, weekly, 7th consecutive day and public holidays based on your organization's requirement.
   
6. Click on the double time after hours check box and enter hours for double time for daily, weekly, 7th consecutive day and public holidays based on your organization's requirement.
   
7. Click the Save button.
   

Overtime pay rate:

1. Overtime rate: By default, this is set to 1.5 times the regular hourly rate. You can configure this based on your organizations payroll model.
   
2. Double time rate: By default, this is set to 2 times of the regular hourly rate. This rate applies when the worked hours reach the set double time hours.  
   

Overtime limit:

1. Daily: Set the number of hours after which overtime and double overtime rates apply. This can be configured separately for each day of the week, allowing you to define different overtime limits for weekends or specific days based on your organization’s payroll policies.
   
2. Weekly: Configure this option to calculate overtime based on total hours worked in a week. When enabled, overtime and double-time hours are calculated using the cumulative weekly worked hours.
   
3. 7th consecutive day: Based on regional labor laws, this option allows you to apply additional pay when an employee works for seven consecutive days within the same workweek, even if daily or weekly overtime limits are not met.
4. Public holidays: Define overtime and double-time rules for public holidays. These rules apply to assigned employees when they work on designated public holidays.
   

Scenario 1: How does the daily overtime configuration work? 

Let's say the daily overtime is configured after 8 hours with pay rate as 1.5 times, and double overtime after 12 hours, with the pay rate as 2 times the regular pay.

An employee with the base pay as $30 per hour, and they work 13 hours on Monday.

 

Overtime Pay Calculation:
Hourly Rate: $10

Total hours worked : 14 hrs on Monday

Regular hours: 8 hrs

Overtime hours: 2 hrs

Double time hours: 1 hr

Regular wage = 8 hrs x $10 = $80

Overtime wage = 2 hrs x ($10 x 1.5) = $30

Double time wage = 1 hr x ($10 x 2) = $20

Total wage = $130

 So with the set OT and double time configuration, the pay for the employee for the Monday shift is $130. 

Scenario 2: How does the weekend overtime configuration works? 

Let's say the weekend overtime is configured as after 7 hours for Saturday, and the entire shift as double time on Sunday.

An employee with base rate as $10 working on the weekend with worked hours as below:

Saturday worked hours: 10 hours

Sunday worked hours: 9 hours

Weekend Overtime Pay Calculation:
Hourly Rate: $10

 

Saturday overtime hours : 3 hrs

Regular hours: 7 hrs

Regular wage = 7 hrs x $10 = $70

Overtime wage = 3 hrs x ($10 x 1.5) = $45

Saturday wage = $115

Sunday wage = 9 x ($10 x 2) = $180

 So the payroll report shows a pay of $115 for Saturday shift and $180 for Sunday shift.

Scenario 3: How does the weekly overtime configuration works?

Let's say the overtime is configured as after 40 hours and the pay as 1.5 times regular pay.

An employee working on the weekly shift and the base rate is $10 per hour. Here is how the weekly pay calculation goes when he works overtime for the week:

Day	Clock-in	Clock-out	Total worked hours
Monday	8:00 AM	6:00 PM	10 hours
Tuesday	8:00 AM	7:00 PM	11 hours
Wednesday	7:00 AM	5:00 PM	10 hours
Thursday	8:00 AM	5:00 PM	9 hours
Friday	7:00 AM	3:00 PM	8 hours

Hourly base rate = $10

Total worked hours = 10 + 11 +10 + 9 + 8 = 48 hours

Regular worked hours = 40 hours

Overtime worked hours = 8 hours

Regular pay = 40 * $10 = $400

Weekly overtime pay = 8 * ($10*1.5) = $120

Total weekly pay = $400 + $120 = $520