How to Manage Overtime in Settings Menu

Article author
Learning Center Mekari
  • Updated

Overtime is work time that exceeds a predetermined work schedule. In the system, overtime will be paid if there is check-in and/or check-out data as a form of data validation. 

Here are the steps:

  1. Enter the Company Settings menu.
    mceclip1.png
  2. In Time Management, click "Overtime".
    mceclip1.png
  3. Click the "Overtime Company" tab.
    mceclip2.png
  4. Fill in the required information such as Overtime Planning,  Rounding Setting Multiplier Overtime Compensation Overtime Payment Setting Automatic Overtime Setting,  and  Overtime Payment Schedule. Here's how to fill it.

A. Overtime Planning

In the settings menu, you can activate the Overtime Planning option. This feature helps you with the Super Admin/admin role to plan overtime with the approval system. Apart from that, you can also assign employees overtime in advance through this feature. Employees can also make claims for Overtime assignments if the assignment is correct.

  1. Check  "Enable overtime planning"  to activate this feature.
    A1.png
  2. Therefore, the option “Allow overtime requests without planning” will appear below it. You can check this option if you allow employees to make overtime requests without any overtime planning from you.

B. Rounding Setting

Rounding off for calculating overtime minutes. The actual minute duration will be converted to the overtime compensation nominal calculation.
mceclip3.png

No Display Explanation
1 Rounding Setting

Check  No Rounding  if there is no rounding.
mceclip5.png
Case in point:
Rounding
0-14 = 0
15-29 = 15
30-44 = 30
45-59 = 45
If employees work overtime with a duration of 3 hours 35 minutes, it will be rounded up to 3 hours 30 minutes.
If  "No Rounding" , it will still be 35 minutes.

C. Multiplier

Used as the basis for calculating the conversion coefficient of the duration of overtime hours to later be converted to nominal rupiah compensation for overtime.
mceclip6.png

No Display Explanation
1 Multiplier

The overtime multiplier regulated by the government is differentiated for weekdays and days off/holidays.  Then the multiplier for day off with a work schedule of 5 days or 6 days is also differentiated.

  1. Weekday multiplier: The first hour of overtime will be multiplied by 1.5. The next hour is multiplied by 2, then totaled.
    mceclip7.png
  2. Multiplier day off 5 working days: Hours 1-8 will be multiplied by 2, then hours 9-9 (only 1 hour) will be multiplied by 3. Then the remainder will be multiplied by 4. Then add up the total.
    mceclip9.png
  3. Multiplier day off 6 working days: Hours 1-7 will be multiplied by 2, then hours 8-8 (only 1 hour) will be multiplied by 3. Then the remainder will be multiplied by 4. Then add up the total.
    mceclip10.png

D. Overtime Compensation

This is the calculation of hourly overtime wages that will be given to employees.
mceclip11.png

No Display Explanation
1 Overtime Compensation

Default : Basic calculation based on the government referring to UU No. 13 Year 2003. One hour overtime wage default = (basic salary + fixed allowance) / 173

- The number 173 is obtained from calculating the number of hours worked in one month.
- In 1 year there are 52 weeks and in 1 week employees work for 40 hours. So, in 1 year employees work for 2080 hours (52 weeks X 40 hours).
- Up to 2080 hours /12 months and the result is 173,333 (rounding applies to 173 hours).

Override IDR: If the company has a different way of calculating overtime pay for each hour, it can be inputted as a substitute for the “default hourly overtime pay” formula.

E. Set Maximum Overtime

Settings to limit employee requests for maximum overtime hours.

  1. Click  “Go to page” to go to the Set Maximum Overtime Settings page.

    You can also access the Overtime settings page by clicking

  2. Click "Create maximum overtime rule" to create maximum employee time settings.
  3. On this page, you can set the maximum overtime time by completing the information in each section.
No. Column/Button Name Description
1 Rule name You are required to fill in the name of this setting.
2 Daily overtime You can choose the maximum daily time, which includes working days  and holidays and leave (Day off & holiday). For each scope, you can choose between the following two options:
  • Unlimited overtime:  Unlimited overtime hours.
  • Maximum overtime:  Overtime hours are limited. You are required to determine and enter the maximum employee overtime hours.
3 Weekly overtime

You can determine an employee's maximum overtime hours per week by choosing between the following two options:

  • Unlimited overtime:  Unlimited overtime hours.
  • Maximum overtime:  Overtime hours are limited. You are required to determine and enter the maximum employee overtime hours.

Apart from that, you can also check  "Include day off & holiday" to include holidays and leave in the weekly calculation.

4 Monthly overtime

You can determine an employee's maximum overtime hours per month by choosing between the following two options:

  • Unlimited overtime:  Unlimited overtime hours.
  • Maximum overtime:  Overtime hours are limited. You are required to determine and enter the maximum employee overtime hours.

Apart from that, you can also check  "Include day off & holiday"  to include holidays and leave in the monthly calculation.

  1. In the next section, you can determine which employees get this maximum overtime hour setting.
No. Column/Button Name Description
1 Select employee

Specify the names of employees by clicking this button. A sidebar appears. 

In the sidebar, all the names of employees in your company appear and you can click on  the employee name  to move it to the selected employees name column. Click  "Submit"  to submit the names.

-  Click “Filter” to make your search easier. Hence, you can choose employee names based on certain categories, such as Branch, Job level, Job position, etc.
- Search for employee names by typing them in the “Search bar” column.

2 Assign rule to new employee Check to automatically apply this maximum overtime hour setting to new employees.
3 Criteria category This option appears if you check Assign rule to new employee. You can apply these settings to new employees based on category criteria that you define yourself, such as Branch, Organization, Job Level, Job Position, and SBU.
4 Criteria subcategory Next, you can determine by subcategory. For example, if you select Branch, then you can determine based on which branches new employees get this setting.
5 Add criteria Click this button if you want to add additional criteria. You will be asked to fill in the category and subcategory criteria again.
  1. Click "Save" to save, or Cancel to not fill out the form to make new settings.
  2. Therefore, the new settings are successfully saved and listed on the Overtime settings page.
  3. By clicking “Action” then “Edit”, you can edit the settings. You can also delete it by clicking “Action” then “Delete”.
  4. To delete settings in bulk, check Rule names, then click “Delete rule”. This action causes all employees who have this setting to move to the default setting.

Important
Consider the following scenario if you set an employee's  maximum overtime hours with time like this:
- Working Day : 4 hours
- Day Off & Holiday : 8 hours
- Weekly maximum duration : 20 hours
MAXOVT11.png

F. Overtime Payment Setting

Setting the minimum duration of overtime that will be taken into account.

No Display Explanation
1 Overtime Payment Setting

1) Minimum overtime payment before (minutes): Minimum duration before starting to calculate overtime before working hours.  If it is filled with 60 minutes, then at the 61st minute the overtime calculation will start. However, the first 60 minutes will still be paid.
2) Minimum overtime payment after (minutes): Minimum duration before starting to calculate overtime after working hours. If it is filled with 60 minutes, then at the 61st minute the overtime calculation will start. However, the first 60 minutes will still be paid.

G. Automatic Overtime Setting

Setting to automatically submit overtime.
mceclip13.png

No Display Explanation
1 Automatic Overtime Setting
  1. Allow automatic overtime requests : When activated, when checking out exceeds the schedule out there will be an automatic overtime request. Still need approval according to the path that has been set. Overtime requests will be entered in the  "Approval List" .
  2. Send email overtime request automatic : When activated, the system will send an email notification for overtime requests.
  3. Minimum overtime before (minutes) : The minimum overtime before starting work must be passed before an automatic request appears.
  4. Minimum overtime after (minutes):  Minimum overtime duration after work that must pass before an automatic request appears.
  5. Overtime break before (minutes) : The maximum duration of overtime allowed before the start of effective working hours.
  6. Overtime break after (minutes) : Maximum duration of overtime allowed after the end of effective working hours.
  7.  

H. Overtime Payment Schedule

Determination of overtime pay period. 
mceclip14.png

No Display Explanation
1 Overtime Payment Schedule Payment Schedule can be made differently from the payroll period by creating a master payment schedule through the Payment Schedule settings tab on the payroll menu.

This is an explanation of how to manage overtime. Furthermore, you can learn how to view an overtime report,  here.