Overtime Process

Earning master to be created for over time with identification as overtime
Tag the overtime earning master with the paystructure definition
Give the Formula of required earning components on which the Overtime calculation is required
Create the Over Time setup by giving the Paystructure, Earning Head, Overtime type, working hour, OT Factor, Calculate days/Month Days.

Overtime Factor is same for all employees with one overtime earning head

Pay Structure	Earning Head	OverTime Type	OT Factor
ABC Pay Structure	Over Time	Normal	1

Different Overtime Factor for same overtime type with multiple Earning heads

Pay Structure	Earning Head	OverTime Type	OT Factor
ABC Pay Structure	Over Time	Normal	1
ABC Pay Structure	Over Time - Site	Normal	1.5
ABC Pay Structure	Over Time - Batching	Normal	2

Different Overtime Factor for same overtime type, with different pay structure and multiple Earning heads

Pay Structure	Earning Head	OverTime Type	OT Factor
ABC Head Office	Over Time	Normal	1
ABC Site1	Over Time - Site	Normal	1.5
ABC Batching Plant	Over Time - Batching	Normal	2

Different Overtime Factor for different overtime types, with multiple Pay Structures and Earning heads

Pay Structure	Earning Head	OverTime Type	OT Factor
ABC Head Office	Over Time - Normal	Normal	1
ABC Head Office	Over Time - Holiday	Holiday	1.5
ABC Site1	Over Time - Normal	Normal	1.5
ABC Site1	Over Time - Production	Production	2
ABC Site1	Over Time - Holiday	Holiday	2.5
ABC Batching Plant	Over Time - Normal	Normal	1
ABC Batching Plant	Over Time - Production	Production	1.5
ABC Batching Plant	Over Time - Holiday	Holiday	2

5. Go to Over Time entry screen to capture the number of overtime hours for employees. Overtime calculation will be determined by the formula in pay structure definition and its linked overtime earning heads. The overtime factor, calculations days, working hours are picked up from the Overtime Setup.

(Example CTC Rs. 50000/-)

Paystructure	Earning Head	OverTime Type	Formula	OT Base Amount
Head Office	Over Time - Normal	Normal	Basic	30000
Site Office	Over Time - Holiday	Holiday	Basic + HRA + Conv	50000

Give the calculation factor for overtime rate calculation. Example, 1, 1.5 or 2 times the formula as defined in the Overtime earning head.

Example of Fixed Days Basis & Month Days Basis

The combination of pay structure, earning head, OT Base Amount, Month/calculate days, Working hours and OT Factor will determine the formula for deriving the base amount on which overtime will be calculated.

Formula = {((OT Base Amount/Calculate Days)/Working Hour)*OT Factor}

Details of OverTime Calculations

For Overtime calculation the above setup is done and actual OT hours needs to be given in Overtime entry form.

Description	Earning Head Basis Changed		Month Days Changed		Working Hours Changed		OT Factor Changed
CTC	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000
Basis	Basic+HRA+Conv	Basic	Basic	Basic	Basic	Basic	Basic	Basic
OT Base Amount	50,000	30,000	30,000	30,000	30,000	30,000	30,000	30,000
Month Days	30	30	28	30	28	28	28	28
Per day OT Rate	1,667	1,000	1,071	1,000	1,071	1,071	1,071	1,071
Working Hours	8	8	8	8	8	10	10	10
Per Hour OT Rate -1	208	125	134	125	134	107	107	107
OT Factor	1	1	1	1	1	1	1	2
Final per our OT Rate	208	125	134	125	134	107	107	161
OT Hours in a month	10	10	10	10	10	10	10	10
Total Calculated Amt	2,083	1,250	1,339	1,250	1,339	1,071	1,071	1,607

Employee wise OT Calculation

Emp Name	Pay structure	Earning Head	Over Time Type	OT Base Amount	OT Factor	Work Hour	Calculate Days	Per Hour Cal	Total OT Hours	Amt
John	ABC HO	Normal	Normal	30000	1	8	30	125	10	1250
Akash	ABC HO	Holiday	Holiday	50000	1.5	8	30	312.5	5	1562.5
Arun	ABC Site1	Normal	Normal	25000	1.5	10	30	125	8	1000