How to configure/update the hourly OT formula used for OT calculation?

When an employee works overtime and is paid based on their hourly pay, we need to define the hourly pay for the employee in the salary structure. The OT will be calculated based on the Hourly pay and the number of OT hours worked.

To configure the Hourly pay for OT, go to Payroll (1) and move to Settings (2). Here under Pay Groups (3) select the Pay Group you want and click on the Configure Icon (4) available under Actions.

In the page move to Salary Structure and under select the salary structure you want from the Range Based or Custom Salary Structure. Then Click Edit Salary Structure.

In the page search for Hourly Pay - Formula/Fixed Value and click Add Calculation.

In the window enter the formula or a fixed number in the box provided under Enter the formula to calculate per hour pay of an employee. You can use the Salary components list to add the components in the structure. Once you have added the formula click Update.

Then click Update to update the OT formula in the salary structure.

You can use the same process to add the OT formula to the other structures if required.

Hope the process to add the OT formula in salary structure is now clear. Need more help? You can refer to the other articles available.