To set up a new benefit based on extra time worked, follow these steps:
1. Access Custom Benefits
Navigate to Settings > Payroll.
Select Create Custom Benefits.
Benefit Name: Enter a clear name (e.g., "After-Hours Incentive" or "Daily OT Bonus").
2. Define the Calculation Logic
When setting up the extra hour benefit, you can now define how the system determines the "Daily Rate" used to calculate the extra hours:
Principle Working Days: The employee's Basic Salary is divided by a fixed number of days (e.g., 22 or 26 days), regardless of the specific month.
Roster Scheduled Working Days: The Basic Salary is divided by the actual number of days the employee was scheduled to work in their roster for that specific month. This ensures a more precise hourly rate for employees with irregular shifts.
3. Configure Payment Parameters
To ensure the calculation aligns with your company policy, adjust these three key settings:
Maximum Cap Minutes: The upper limit of payable extra time.
Example:If set to 60 minutes, an employee who works 90 extra minutes will only be paid for 60 minutes.
Grace Minutes: A "buffer" time that is subtracted from the total extra hours.
Example: If an employee works 45 extra minutes and Grace Minutes is set to 5, they are paid for 40 minutes.
Rounding to the Nearest Minutes: How the system "cleans up" the final number.
Example: Rounding to the nearest 10 minutes means 34 minutes becomes 30, and 36 minutes becomes 40.
Example Scenario Walkthrough
Category | Time Data |
Scheduled Shift | 9:00 AM – 5:00 PM (8 Hours) |
Actual Attendance | 8:45 AM – 5:30 PM (8:45 Hours) |
Total Extra Time | 45 Minutes |
Applying the Logic:
If your settings are Maximum Cap: 60m, Grace: 5m, and Rounding: 15m:
Check Cap: 45m ≤ 60m (Within limit ✅, no reduction needed).
Apply Grace: 45m - 5m = 40 minutes.
Apply Rounding: 40m rounded to the nearest 15m = 45 minutes payable.
[!TIP]
Remember that Daily Extra Hours consider the entire day.
For example, if an employee comes in 15 minutes early and leaves 30 minutes late, the system counts that as 45 minutes of extra time.
With your Maximum Cap in place, even if the total extra time exceeds the cap, the system will only pay up to the maximum allowed minutes.
✅ Benefit Created: This custom benefit will now appear as a line item in your payroll generation.