Along with monthly salaries, employees can also be rewarded for their overtime working hours. Administrators and HR managers can set up how much each employee should get for their overtime hours in the Payroll module.
In Payroll Employees page, each employee has the payroll settings. Overtime settings can also be found there.
Under the payment settings, “Fixed & Overtime from HRMS” should be chosen, if the company employees should be paid for their overtime hours. There are three types of Overtime rates:
Regular Overtime Rate – it is paid when the employee works overtime during the working days.
Weekend Overtime Rate – it is paid when the employee works on day offs.
Holiday Overtime Rate – it is paid when the employee works on holidays.
There are two types of payment rates: Percentage-Based or Fixed.
When the fixed rate is chosen, the employee overtime hours will be multiplied by the amount set up under the Amount/Percentage column.
When the percentage is chosen, the employee overtime hours will be calculated based on the basic salary multiplied by the percentage.
The rates are per hour.
The employee worked hours can be checked from Humans>>Attendance Tracking>>Attendance report. The application records hours either from Biometric Device (if integrated) or from the login/logout total hours.
Weekend overtime hours are highlighted in grey. The employee also worked on the Weekend – 50 hours. When the managers generate payrun for the employee, the overtime payments will be automatically calculated and applied to the payments table.
The above overtime calculations are based on fixed rates. For example, during the weekend the employee worked 50 hours and his/her rate for the Holiday Overtime is 20 (UZS). So the payrun is 1,006.95 (UZS).
The percentage based (% of basic salary) overtime hours calculation is as follows:
salary / working days*8 = hourly rate
overtime based % hour * ((hourly rate /100) * overtime based)