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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.
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  2. In Time Management, click "Overtime".
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  3. Click the "Overtime Company" tab.
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  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.
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  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.
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1 Rounding Setting

 Check No Rounding if there is no rounding.
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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.
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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.
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  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.
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  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.
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D. Overtime Compensation

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

Setting to limit employee maximum overtime hours requests.
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1 Daily Maximum duration (hours)

1. Working day:  The system will validate the daily overtime duration on the working day shift.
2. Day off & holiday:  The system will validate the duration of daily overtime on the day off/holiday shift (00:00 - 00:00).
3. Weekly maximum duration (hours):  The system will validate the total duration for a week (Monday to Sunday), where users can also activate "include day off & holiday" into the validation for the total weekly duration.
4. Monthly maximum duration (hours): The system will validate the total overtime duration in 1 period and the maximum overtime duration per month in the settings. Monthly validation will use the absence cut-off to determine the 1-month period so that at each point of entry the user can apply for overtime. Users can also activate "include day off & holiday", which means the duration of the day off and holiday will be counted in the validation of the total monthly duration.

For example, 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

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1
Daily validation on workday
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* Monday: Employees request 4 hours of overtime --> Pass validation because the overtime request does not exceed the maximum overtime rule.
* Tuesday: Employees request 3 hours of overtime --> Pass validation because the overtime request does not exceed the maximum overtime rule.
*Wednesday: A warning will appear on the system: daily max duration on a working day is 4 hours. Because if an employee requests overtime for 5 hours, it means that it has exceeded the maximum rule of 4 hours of overtime.
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* Monday: Employees request 4 hours of overtime --> Pass validation because the overtime request does not exceed the maximum overtime rule.
* Tuesday: Employees request 3 hours of overtime --> Pass validation because the overtime request does not exceed the maximum overtime rule.
*Saturday: A warning will appear on the system: daily max duration on a working day is 8 hours. This is because if an employee requests overtime for 9 hours, it means that it has exceeded the maximum rule of 8 hours of overtime.
3
Weekly validation
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* Monday - Friday: Employees request overtime for no more than 4 hours, so it passes validation because overtime requests do not exceed the maximum overtime rule.
*Saturday: Employees request 4 hours of overtime --> Pass validation because the overtime request does not exceed the maximum day off overtime rule.
4
Weekly validation + daily validation on day off is excluded from weekly validation 
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* Monday - Friday: Employees request overtime for no more than 4 hours, so it passes validation because overtime requests do not exceed the maximum overtime rule.
*Saturday: A warning will appear on the system: weekly max duration on a working day is 20 hours. Because in a week (workday scenario from Monday to Saturday), employees have requested overtime for more than 20 hours.
*Sundays: Employees request 7 hours of overtime --> Pass validation because the overtime request does not exceed the maximum day off overtime rule.

F. Overtime Payment Setting

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

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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.
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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. 
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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.