To adjust overtime settings, please follow these instructions:
Go to the Settings page.
From the "Payroll" side menu, select "Playgroups Settings."
Select a specific payroll, then go to the "Payroll Calculation" tab.
Go to the Variable pay section.
- Select "Overtime Policy"
Then select "Add Overtime Policy"
The user can activate the "Compensate Overtime with Vacation" option, which allows the employee to request compensatory leave for the overtime hours worked.
How to Calculate Overtime and Its Impact on Payroll:
Example:
Employee Ahmed's total salary is SAR 6,000
(SAR 3,000 basic salary + SAR 1,000 housing allowance + SAR 1,000 transportation allowance + SAR 1,000 communication allowance)
Ahmed's legal working hours were 8 hours per day.
Case 1:
Employee Ahmed worked 10 hours of overtime in March at a normal overtime rate of (X1.5). Let's assume the chosen overtime pay policy was full salary. The overtime pay will be:
= Number of overtime hours * [Full hourly pay + 50% x base hourly pay]
Full hourly pay = 6,000 ÷ 30 ÷ 8 = 25 SAR
Base hourly pay = 3,000 ÷ 30 ÷ 8 = 12.5 SAR
= 10 * (25 + 0.5 * 12.5) = 312.5 SAR
Case 2:
In March, employee Ahmed worked 10 hours of overtime at a double overtime rate (x2). Let's assume the chosen overtime pay policy was full salary. The overtime pay will be:
= Number of overtime hours * [Full hourly wage + Base hourly wage]
= 10 * (25 + 12.5) = 375 Saudi Riyals
Case 3:
In March, employee Ahmed worked 10 hours of overtime at a double overtime rate (x2). Assume that the chosen overtime pay policy was base salary only. The overtime pay will be:
= Number of overtime hours * [Base hourly wage + Base hourly wage]
= 10 * (12.5 + 12.5) = 250 Saudi Riyals
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