This guide explains how to configure overtime calculated at the monthly level in a work agreement.
The system calculates the actual number of hours worked, subtracts the standard hours, and calculates overtime according to your configuration. Note: the system rounds the result up.
The formula is: (actual hours + paid absences) - standard hours - breaks = overtime. You can then define tiered pay rates for the overtime hours, for example the first 2 hours at 125% and all remaining hours at 150%.
- Go to Settings, then Work Agreements, and select the work agreement you want this option applied to.
- Scroll down and open the "Monthly overtime" tab.
Example
- Actual hours: 118
- "Vacation" time off: 8 hours
- Employee's standard hours: 105
- Break: 6.5 hours
118 + 8 - 105 - 6.5 = 15
Based on the employee's report and the work agreement setting shown in this guide, the employee receives 2 hours at 125% and 13 hours at 150%, since the first two hours were set to 125% and the rest to 150%.