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Overtime Calculation with multilevel approvals


we are using positive time management.

we need to calculate overtime complying labor acts. so we need to check the basic pay and DA to calculate the overtime payment.

however, overtime payment needs to be approved in multilevel (supervisor, Deputy Manager, and Manager).

adding to these difficulty, the users want an option of giving either Compensatory off hours or overtime payment as per the decision of the deputy manager and manager.

Please let me know how to implement this process.

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2 Answers

  • Feb 19 at 05:40 PM

    For your "multilevel" approvals, you should look at Workflow, but you should first look at how the overtime will be entered in SAP.

    Will it be through ESS, Time Capture Device, Paper Document entered by Time Clerk or an other way?

    As for the calculation, you should be able to achieve what your require through one or more PCRs, although you may require a Custom Payroll Operation (I'm not sure what DA means for you).

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    • The overtime should be entered through the ESS portal for some employees and for the workmen in field, it is entered by the supervisor.

      As of now it is being maintained in paper document, in future it should be paperless.

      Over time has below calculations. (DA is dearness allowance)

      1.A employee gets overtime payment if he works more than 9 hours a day (which is calculated as 2*(basic+DA) ).

      2.if his work schedule is for 6 hours and he works for 8 hours, then the 2 hours is single payment (calculated as 1*Basic)

      3.if the work is more than 48 hours a day, then it is double the payment (2*Basic+DA) )

      4.if his weekly schedule is only for 42 hours and he works for 48 hours, then overtime is single (calculated as 1*basic, for the six hours)

      5.if his weekly schedule id for 42 hours and he works for 50 hours, then it is calculated for 6 hours as 1*basic and 2 hours as 2*(basic+DA)

      so in view of the above rules, for a week starting from sunday to saturday, we must check daily calculation and weekly calculation as well as weekly calculation, and pay which ever is benifitial to the employee.

  • Feb 22 at 01:09 PM

    For your "multilevel approvals" of overtime entries, someone with ESS experience should give you some feedback.

    For the "overtime calculation", you will first have to clarify the parameters. In your example 1, out of the 9 hours, how many are paid at regular rate and how many are paid at 2*Basic+DA Rate, and in your example 3, are you talking of 48 hours a week, and if so, how many hours are paid at regular rate?

    Once you have clarified the overtime calculations, you should be able to create Time Evaluation rules to read daily and weekly overtime and generate the appropriate Time Wage Type (Regular OT or Double OT), and Payroll Calculation rules to generate the payment.

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