Switch on automatic overtime
Overtime is calculated from your team's clock-in / clock-out records (attendance) every time you calculate payroll. It is off until you switch it on, and works for any type of shop.
- Open Finance → Payroll → Settings → Overtime and tick Calculate overtime automatically.
- Choose what counts as overtime — you can combine: hours in a day beyond N (e.g. 8), minutes after a clock time (e.g. 22:00), time beyond the employee's roster shift end, and the whole day on a rest day or public holiday. Add your public holidays in the same section (there is no built-in holiday calendar).
- Set the multipliers (defaults: normal day 1.5, rest day 2.0, public holiday 3.0) and the rounding: count in blocks (default 15 minutes) and the minimum per day before overtime counts (default 30 minutes).
- Save the settings version. It applies to payroll months calculated from its effective date; finalised (approved / locked) months never change.
How the hours and the rate are worked out
- Each shift belongs to the day it was clocked in, so a shift across midnight stays on its start day. A recorded break is taken out of the middle of the shift.
- When several rules match the same minutes, each minute is paid once, at the highest multiplier — nothing is counted twice.
- A shift without a clock-out is left out and flagged on the payslip detail — correct it under Attendance and press Recalculate.
- Rate per overtime hour = the employee's own OT rate (set under Salaries) if given, else their hourly rate, else monthly basic ÷ (days × hours, default 26 × 8). The payslip shows the formula, e.g. "Normal day 3 h × 1.5 × RM12.50/h = RM56.25".
- Hourly staff: enter only normal hours in Adjust — overtime hours are paid by this rule.
Where overtime shows, tax and contributions
- The payroll run has an Overtime column; the staff member's detail shows overtime day by day, and the payslip, PDF, staff app payslip and payroll CSV export show the overtime line or columns.
- Overtime is part of gross pay and marked taxable. It counts in a statutory contribution's wage base only when that item ticks Overtime — in Malaysia EPF excludes overtime by default, while the SOCSO and EIS presets include it. Check with your accountant.
- There is no approval step. If an amount needs correcting, use Adjust with a reason.