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Overtime Policy Setup

A man clocks out 47 minutes late. Is that 47 minutes of overtime, 30, or nothing at all? This screen answers that for every day of the week, and it is the only place the answer is written down.

Where
Payroll › Setup › Overtime Policy Setup
Who uses it
The implementation consultant, with the factory manager
When
Before attendance is processed for overtime
Needs first
Nothing. Attach it to the Employee Policy Profile afterwards

What it is for​

Two jobs, both arithmetic. It turns extra minutes worked into credited overtime minutes, and it holds every rounding the overtime money passes through.

The crediting is the award table on the grid. One line per day of the week, each with its own cap and its own set of bands. The bands are read as an award table: the extra minutes a man worked fall into one of them, and that band's Overtime figure is what the day credits, not the minutes themselves. A band of 20 to 49 minutes paying 30 means every man who stayed between twenty and forty-nine minutes late is credited half an hour. The first band normally runs from 0 to 19 and pays nothing, which is how "under twenty minutes does not count" is written.

Two rules about bands matter more than anything else on this page. The first band must start at 0, and the bands must be continuous. Minutes that fall in a gap, or below the first band, match nothing and are credited nothing, with no message anywhere. That is the single most common reason a factory reports that overtime is being worked and nobody is being paid.

Maximum OT is the daily ceiling in minutes, and a day whose Applied is not ticked is ignored completely however long it was worked.

The rounding fields are the money half, and they apply in order. The hourly rate is worked out from the man's salary and his Pay Rate and rounded to Per Hours Rounding Precision. Then, if Round Amount Per Day is ticked, each day is priced and rounded on its own to Amount Rounding Precision before the days are added up, which is what a client means when they say the daily figure on the report must match the total. Finally the total is rounded by Total Amount Rounding Method to Round Total Amount To.

One policy per legal entity, and one date window per policy. The pricing takes a single window row, so a policy number carrying two windows is a policy that may be read on the wrong one.

Every field, in plain words​

Basic Data​

FieldWhat it meansWhat to put in itNotes
PolicyThe codeOT-STDRequired. One policy per legal entity is the normal arrangement
NameHow the policy reads in a listStandard overtime policyRequired
BlockStops the policy being pickedLeave it clearDo not block a policy that policy profiles still name
Per Hours Rounding PrecisionHow many decimals the hourly rate is rounded to2
Round Amount Per DayPrice and round each day on its own, then add the days upTick it when the client's report shows a figure per day that has to add up to the totalLeave it clear to price the whole lot in one go
Amount Rounding PrecisionHow many decimals each day's amount is rounded to0 for whole rupeesOnly used when Round Amount Per Day is ticked
Total Amount Rounding MethodHow the final total is roundedRound NearPick from the list. Round Up, Round Down or Round Near
Round Total Amount ToWhat the total is rounded to1 for whole rupees, 5 for the nearest five

Period​

FieldWhat it meansWhat to put in itNotes
Date FromThe first day this policy applies01-Jan-2026Keep one window per policy. A second window on the same policy may be read instead of this one
Date ToThe last day it appliesLeave it at the open ended value unless you are retiring the policy

Days​

One line per day of the week. Seven lines, and each day may only appear once.

FieldWhat it meansWhat to put in itNotes
Line #The line numberFills itselfLeave it
DayThe day of the weekMonday through SundayRequired. A day listed twice is refused
AppliedWhether overtime is credited on this day at allTick it on every day the client pays overtimeAn unticked day credits nothing, whatever its bands say
ConditionThe award bands for this dayOpens the sub grid belowA day that is Applied with no bands is refused
Maximum OT (Minutes)The most overtime minutes this day may credit1200 on a working day, 1440 on a SundayCannot be negative

Condition, the award bands​

One line per band of extra minutes, in order, starting at zero.

FieldWhat it meansWhat to put in itNotes
Line #The line numberFills itselfLeave it
Range fromThe fewest extra minutes this band covers0, then 20, then 50The first band must start at 0
Range ToThe most extra minutes it covers19, then 49, then 79Must not be less than Range from. The next band must start one minute later, with no gap
OvertimeThe overtime minutes this band credits0, then 30, then 60Zero credits nothing, which is how a grace stretch is written
Line TextA note for whoever reads this bandGrace, not paid

A worked factory policy​

A 500 person plant on a nine hour day, paying overtime in half hours, nothing under twenty minutes, up to twenty hours of overtime on a working day and a full day on a Sunday.

Seven day lines, all Applied, Maximum OT 1200 on Monday to Saturday and 1440 on Sunday. The bands on each day are the same: 0 to 19 credits 0, 20 to 49 credits 30, 50 to 79 credits 60, 80 to 109 credits 90, and so on in thirty minute steps.

A fitter who stays 47 minutes late is credited half an hour. One who stays 12 minutes is credited nothing. One who works a 14 hour Sunday is credited the whole day, up to the 1440 cap.

How to configure it​

  1. Create the policy with its code and name, one per legal entity.
  2. Set the Period dates to a window that covers everything you will process. Keep one window per policy.
  3. Set Per Hours Rounding Precision, usually 2.
  4. Decide Round Amount Per Day with finance. Tick it if their report must show a figure per day that adds up to the total, and set Amount Rounding Precision to 0.
  5. Set Total Amount Rounding Method and Round Total Amount To, usually Round Near and 1.
  6. Add seven day lines, one per weekday, and tick Applied on each day overtime is paid.
  7. Set Maximum OT per day in minutes. Twenty hours is 1200, a whole day is 1440.
  8. On each day, open Condition and build the bands. Start the first band at 0 and give it an Overtime of 0 if short stretches are not paid.
  9. Continue the bands in the step the client pays in, each one starting one minute after the last ended, up to the daily cap.
  10. Save, then attach the policy to the Employee Policy Profile, and check one man's attendance for a day you know the answer to by hand.

Scenarios​

"Nothing under half an hour should be paid"​

The first band 0 to 29 crediting 0, then the paid bands from 30 upwards. Do not simply delete the short band, because minutes below the first band match nothing and nothing is a silent answer rather than a clear one.

"Sunday work is paid for the whole day"​

Sunday's own line with Maximum OT of 1440, Applied ticked, and its own bands. The day lines are independent, so Sunday does not have to look like a Tuesday.

"Friday is a half day and overtime starts earlier"​

Friday is just another line. Give it its own bands and its own cap, and the rest of the week is untouched.

"We do not pay overtime on a weekly rest day"​

Leave Applied clear on that day. Nothing is credited however long anybody works, and you do not need to delete the bands.

"Overtime is being worked and nobody is being paid"​

Almost always the bands. Check that the first band on that day starts at 0 and that the bands are continuous, then check that the day is Applied, then check that the man's policy profile names this policy.

What it is connected to​

  • Reaches a man through the overtime policy named on his Employee Policy Profile. A man whose profile names no policy earns no credited overtime.
  • Read when attendance is turned into overtime, so changing a band changes what the next processing credits, not what has already been paid.
  • Decides how many minutes are credited. The payslip line they are paid on comes from Over Time Category, and the hourly rate from the man's salary and his Pay Rate.
  • The multiplier for a time and a half hour is not here. It is typed on the overtime document.
  • One policy per legal entity. A client with two companies needs two policies.

If something looks wrong​

  • "Overtime is worked and nothing is credited" - the bands do not start at 0, or there is a gap in them, so the minutes match no band. A hole in the bands pays nothing and says nothing.
  • "It will not save and says Applied is ticked but no Condition ranges are defined" - that day needs its award bands.
  • "It will not save and says the first range must start at 0" - exactly that. Add the band that covers the minutes below your first paid band, crediting zero if they are not paid.
  • "It will not save and says the ranges must be continuous" - one band ends at 49 and the next starts at 60. It has to start at 50.
  • "It will not save and says a day is on more than one line" - delete the duplicate day line.
  • "Long shifts are being cut short" - Maximum OT on that day is the ceiling. Raise it for the day in question.
  • "The report per day does not add up to the total" - tick Round Amount Per Day so each day is rounded on its own before they are added.
  • "One group of workers gets overtime and another does not" - the second group's Employee Policy Profile names a different policy, or none.