Setting Up Overtime Pay Codes in Keka

Learn how to set up overtime pay codes in Keka HRMS. Configure pay rates and manage employee overtime accurately and efficiently.

A pay code is a unique tag you need to manage overtime payments in Keka. Generally, it's the HR Manager or the Payroll Admin who sets up these codes.

To begin, navigate to the Time & Attend (1) section on the right side of your screen. From there, click on the Overtime (2) tab. Now, look for a tab called Pay Codes (3) and click on it.

Here you'll see an Add Pay Code (4) button, click it and a form will appear.

Fill in the Name for your pay code, like "Daily Overtime" or "Holiday Overtime." You can also add a Description, but that's optional. Then enter the actual Pay code you want to use. Although there's no limit, try to keep it short, maybe up to three characters, for easy identification.

Now, decide how you'll pay for overtime. Keka provides three ways to set this up. First, you can decide to pay a multiple of the hourly rate. For example, if an employee makes Rs. 500 an hour, setting the multiple at 2 would mean they get Rs. 1000 for each overtime hour.

The second option is to pay a set amount for every hour of overtime. So if you set it at Rs. 1000, then an employee working two hours of overtime would earn Rs. 2000 in total.

The last option is lump-sum payment, a set amount that an employee gets no matter how many overtime hours they work. This amount can be derived from other factors like their CTC or Daily Allowance component.

And that's how you set up overtime pay codes in Keka!

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