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

Introduction

If your employees are eligible for overtime (OT) pay based on hourly rates, you need to define how their hourly wage is calculated in the salary structure. This ensures that overtime payments are accurate and compliant with your company’s compensation policy.

This guide walks you through configuring or updating the hourly OT formula in Keka's payroll settings.

Navigate to Pay Group Settings

1. Go to the Payroll section in your Keka dashboard.

2. Click on Settings.

3. Under Pay Groups, find the pay group where you want to set up OT calculation.

4. Click the configure icon (gear icon) under the Actions column.

Access and Edit the Salary Structure

1. On the pay group configuration page, go to the Salary Structure tab.

2. Select the salary structure you want to modify—either Range-Based or Custom Salary Structure.

3. Click Edit Salary Structure.
   
   

Add or Update the Hourly Pay Formula

1. In the salary structure editor, search for Hourly Pay - Formula/Fixed Value.

2. Click Add Calculation next to it.
   
   
    

3. In the popup window, enter the formula or a fixed hourly rate under the Enter the formula field.

   • You can use the Salary components list on the right to insert existing components into your formula.

4. Click Update to save the formula.
    

Tip: The formula should reflect how you want the system to derive hourly pay, e.g., by dividing basic salary or total fixed pay by standard monthly hours.

Save the Salary Structure

• After entering your formula, click Update again to apply changes to the salary structure.
  
  
   

Notes, Tips, Important

Tip: If you manage multiple salary structures, repeat the steps above to configure the OT formula for 
each structure as needed.