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Overtime Type in Frappe HR: Defining How Overtime Is Paid

An Overtime Type defines how a particular kind of overtime is paid the rate or multiplier applied to the employee’s pay, and the salary component the overtime amount is paid through. Setting up overtime types means each sort of extra hours (a regular weekday, a weekend, a public holiday) can be paid at its own agreed rate, consistently.

You will find it under Home > Human Resources > Shift & Attendance > Overtime Type.

BEFORE YOU START

Know your overtime policy the rates you pay for different situations and have the salary component through which overtime is paid set up, since the type ties the rate to a payable component.

How to create an Overtime Type

  1. Open the Overtime Type list and click New.
  2. Enter the Overtime Type name (for example, “Weekday OT” or “Holiday OT”).
  3. Set the rate or multiplier at which this overtime is paid (such as 1.5× or 2× the normal rate).
  4. Link the salary component the overtime amount should be paid through.
  5. Set any conditions that govern when this type applies, then Save.

How overtime types are used

An Overtime Type is the rate definition that overtime records draw on. When overtime is logged for an employee, the chosen type determines the multiplier and the component used, so the overtime pay is calculated and routed correctly without working out the rate by hand each time.

TIP

Create a separate type for each rate your policy uses ordinary overtime, weekend, and holiday rates often differ. Defining them once keeps overtime pay consistent and removes the guesswork (and disputes) over which rate applied.

Related Topics

  • Overtime Slip
  • Salary Component
  • Shift Type
  • Attendance

SUMMARY

An Overtime Type defines how a kind of overtime is paid the rate or multiplier and the salary component used. Create one with a name, a rate, a linked payable component, and any conditions for when it applies. Overtime records use the type to calculate and route overtime pay correctly. Defining a separate type for each rate in your policy keeps overtime consistent and dispute-free.

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