Overtime

Overtime is calculated based on employee check-in and check-out times.

Create an Overtime Type

Navigate to the Overtime Type doctype and configure:

• Maximum Overtime Hours Allowed Per Day: If set, overtime exceeding this limit won’t be considered for payment.
• Overtime Salary Component: The salary component through which overtime earnings are paid.
• Overtime Amount Calculation:
  • Fixed Hourly Rate: A predefined per-hour rate multiplied by total overtime hours.
  • Salary Component-Based: Select applicable salary components. The total amount is divided by the salary cycle's payment days and standard working hours to determine the hourly rate.
• Pay Rate Multipliers:
  • Standard Multiplier: The hourly rate is multiplied by this value.
  • Holiday/Weekend Multipliers: If enabled, separate multipliers can be set for public holidays and weekends; otherwise, the standard multiplier applies.

To allow overtime for a specific Shift Type:

1. Navigate to the Shift Type doctype.
2. Enable Allow Overtime.
3. Set the applicable Overtime Type.
4. Assign the shift to employee(s).

Record Employee Check-ins & Mark Attendance

• Employees' check-in and check-out times must be recorded.
• Attendance must be processed for the shift type as overtime details are fetched based on this.

Generate & Approve Overtime Slip

1. Create an Overtime Slip and select the employee and date range.
2. Click Fetch Overtime Details to populate the Overtime Details table based on attendance records.
3. HR can approve or reject the overtime slip.
4. Upon approval, an Additional Salary record is created, ensuring payment is included in the salary cycle corresponding to the slip’s from date.