Last Updated on
To calculate the Overtime Allowance based on the Per Hour Basic Pay (or Basic Pay and DA) received, follow the steps given below:
- Create/Alter Basic Pay Head
- Create/Alter Over Time Hours as a Production Type
- Create/Alter OT Allowance Pay Head
- Define Salary Details
- Record Attendance and Overtime details
- Pass Payroll Voucher
Step 1: Create/Alter Basic Pay Head
For illustration purpose we have taken an User Defined calculation period of 30 days in each month
Similarly, create DA Pay Head if required.
Step 2: Create/Alter Over Time Hours as a Production Type
Step 3: Create/Alter OT Allowance pay Head
Create the OT Allowance Pay Head as per the details shown in the screenshot.
Note: If DA is not applicable then the OT Allowance formula will have only Basic Pay component for the computation of OT.
The above Pay Head should not affect the Net Salary and hence the option is set to No
Basic Salary divided by total present days will give per day salary. Assuming that there are 8 Hrs in a day,
8 Hours = 100%
1 Hour = 12.50%
Note: In this case study 8 Hours is considered as working hours. In other cases the following table can be used to compute the Per Hour OT amount.
Step 4: Define Salary Details
Step 5: Record Attendance and Overtime details
Step 6: Pass Payroll Voucher