How does Overtime (OT) Work in HR HUB?

In HR HUB, the working of Overtime is usually done in the following ways mentioned below:

1. Configuring Overtime (OT) in Shift Master
2. Calculating OT Hours
3. Supervisor Approval for OT Hours
4. Finalizing Payroll with OT Information

Configuring Overtime (OT) in Shift Master

Navigate to the "Attendance ⇒ Shift Master Information to configure your organization's OT rules.

Defining OT Rules

• Week Off Overtime: Specify the conditions under which employees will receive overtime pay for working on their designated days off. You can define whether the OT should be paid at a standard or higher rate (e.g., 1.5x or 2x their regular pay).
• Festival Overtime: Like a week off OT, you can define rules for employees working during public holidays or festivals. Set the applicable rate of compensation for these hours.

Calculating Overtime (OT) Hours

Once the OT rules are configured in the Shift Master, HR HUB will automatically start tracking overtime hours as employees log in and out of their shifts.

The system compares the actual worked hours with the scheduled hours, applying the OT rules whenever applicable.

Supervisor Approval of OT Hours

Supervisors can review the calculated OT hours for each employee by navigating to the Attendance ⇒ OT Approval.

If discrepancies are found, supervisors can adjust the recorded OT hours. This might involve adding or removing hours based on actual work done.

OT Calculation for Fixed and Hourly Pay Groups

Fixed Pay Groups:

For employees with a fixed salary, OT is typically calculated as an additional amount on top of their regular salary.

Calculation Example: If an employee earns a fixed salary of $3,000 per month and works 10 OT hours at a rate of 1.5x their regular pay, the OT compensation would be added to their fixed salary.

Hourly Pay Groups:

For employees paid by the hour, OT is calculated by multiplying the number of OT hours by the predefined OT rate.

Clients who do not have access to the attendance module can directly mention the per-hour rate in the “Assign Pay Component” in the payroll module by navigating to the Payroll ⇒ Assign Pay Component.

Calculation Example: An hourly employee earning $20 per hour, working 8 OT hours at a 2x rate, would earn $320 (8 hours x $40) as OT compensation.

Finalizing Payroll with OT Information

Payroll Integration

The OT hours and corresponding compensation are automatically integrated into the payroll system once the supervisor approves.

The payroll system will reflect the total earnings, combining regular hours, OT hours, and other applicable compensation.

Running Payroll:

During payroll, HR HUB will factor in all approved OT hours and apply the appropriate compensation based on the predefined rules.

The system ensures that OT payments are correctly calculated and added to the employee’s final pay for the period.