Overtime Setup in Payroll
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How to set up Overtime Calculation in Payroll?
In this tutorial, we will learn how to configure and calculate Overtime (OT) for payroll generation in Logic ERP.
Access to Grade Setup
Navigate to the Main Menu → Payroll Setups → Setup Grades window.
Here, you can define overtime settings for both new and existing grades.
Select the desired Grade and enable the checkbox:
“Use new calculation engine for overtime and undertime calculation.”
This activates the overtime configuration options for that grade.
Configure Overtime Settings
Press the Space Key to open the configuration window.
Now, set the following options:
Enable OT Deduction – to allow overtime computation.
Calculate Overtime from Shift End Time – ensures overtime is calculated only after the scheduled shift ends.
Overtime Rate as Field:
Select Actual for a fixed rate per hour and specify the Overtime Rate per Hour.
To define a custom calculation, select User Defined from the dropdown.
When using User Defined, press the Space Key on OT User Defined Rate Setting and tick the Gross Components (such as Basic, DA, or HRA) that should be included in overtime calculation.
Next, configure additional parameters:
Minimum OT Minutes – define the minimum extra time that qualifies for overtime.
Include Early Time in OT – enable this option if early login before shift start should count toward OT.
Minimum Early Time in Minutes – specify how much early time will be considered.
Once all configurations are complete, click OK to save the settings.
Mark Employee Attendance
Navigate to Payroll Entries → Attendance Register.
Select the Employee, then define their Time In and Time Out. For example:
Standard Shift: 8 hours
Actual Worked: 09:30 hours
Here, the employee worked 01:30 additional hours, which will be considered as Overtime. Click Save to record the attendance.
Generate Payroll
Next, go to Payroll Entry → Payroll Generation.
Select the Employee and the Payroll Month, then click Recalculate.
The system will display the payroll details on the screen, showing:
Total Overtime Hours ( 1.5 hours in this case)
Overtime Salary calculated as per the defined rate or user-defined formula.
OT Formula Steps:
Per Day Salary = Total Monthly Salary ÷ Total Days in a Month
Per Day Salary = ₹100,000 ÷ 30 = ₹3,333.33
Per Hour Salary = Per Day Salary ÷ Total Working Hours per Day
Per Hour Salary = ₹3,333.33 ÷ 8 = ₹416.67
Overtime Amount = Per Hour Salary × Total OT Hours
Overtime Amount = ₹416.67 × 1.5 = ₹625.00
Result
You have successfully configured and calculated Overtime in Logic ERP. The system now automatically includes the OT amount during Payroll Generation, based on employee working hours and configured rate settings.
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