This article explains how the overtime balance is structured and which functions are available to manage overtime in Personio.
Please note that for employees with an hourly salary, certain absences types (e. g. paid vacation or sickness) on workdays are automatically included in payroll calculations. The prerequisite for this is that the function Consider time tracked during absences of this type as overtime? is activated for the respective absence type(s). Click here for further information.
Overtime Hours in the Attendance View
If overtime and minus hours are recorded based on the work schedule of the employee, an overview appears in the attendance view under the tab Attendance of the employee profile.
The individual values are composed as follows:
|Tracked||Overtime status at the end of the month, after overtime hours have already been compensated through either vacation days, payouts or manual adjustment.|
|Month balance||All overtime recorded within the month without deductions.|
|Total balance||Overtime balance since time tracking began.|
The Overtime balance
To access the overtime balance from the Attendance tab, click on the options button with three dots in the Overtime Hours section and select More Details. In the overtime balance, you receive comprehensive information on the individual overtime and deficit hours tracked by your employees, and you can also get an overview of the monthly overtime balances. Youxa to edit the overtime account as well as pay out overtime or convert it to vacation time. You can remove individual entries using the bin icon after each booking entry.
Adjusting the balance
Click on Edit balance to adjust an employee’s individual overtime balance as of a specific past or future date. If you enter a negative value under Overtime Hours, this number of hours will be deducted from the balance. If the value is positive, the number of hours is added.
If you would like to compensate overtime financially, select the option Pay Out. You can then enter the number of hours to be paid out, the payment rate and the calculation factor. Personio will suggest a default rate based on the employee’s current monthly salary.
The hourly rate is calculated from the following formula:
Fixed salary x 3 / 13 / department’s weekly hours (fixed salary x 3 months / 13 weeks / department’s weekly hours)
Please note that Personio uses this predefined formula for calculating hourly rates on the basis of the monthly salary by default. However, amounts can also be adjusted manually.
You can also schedule overtime to be paid out on a specified date.
Once you have saved your settings, the respective employee will see the financial overtime compensation in their Salary tab.
Please note that employees who are to process financial overtime compensation must have the appropriate edit rights for employee salaries.
Crediting in vacation time
Click on Vacation time if you want to convert overtime into additional leave. You again have the option to enter the number of hours to be converted and the number of leave days to be generated as a result. Alternatively, you can define a calculation factor.
A factor of 1 means that each 8 hours of overtime will be converted into one day’s leave. You can, of course, adjust this factor to reflect your internal policies. The following table shows commonly applied factors:
|Factor||Hours required for one day of leave|
|0.5||16 hours overtime|
|1||8 hours overtime|
|2||4 hours overtime|
The factor-based calculation is independent of the defined working schedule. This means that, when a factor of 1 is applied, 8 hours of overtime will be needed to generate one day of leave even for employees who only work 4 hours per working day. If you prefer to organize this differently, you can adjust the factor accordingly.
The factor is calculated from the following formula:
8 / x = factor (with x being the number of hours required for one day of leave)
Once you have saved your settings, the additional leave is credited to the employee under the Absence tab and the respective absence type.
Overtime can only be converted to absence types subjects to accruals. If you would like to have leave in lieu of overtime worked shown separately from normal leave, you can create an additional absence type for overtime. To do this, it is essential that accrual policies are enabled, and a rule is defined for 0 days per year and assigned to employees.
Please note that employees who are to process leave in lieu of overtime worked will need the relevant editing rights for employee attendances.
As an alternative to converting the overtime into vacation time, the employee can enter a 0 at the start, end, and break, or correspondingly fewer hours for the day on which he or she wants to compensate for the overtime. As a result, the hours that they would have worked on this day according to the working time model are automatically deducted from the overtime balance. To do this, you would have to go to Settings > Attendance and have the overtime calculated based on daily hours in the corresponding working schedule, as well as activate the deficit hours. Please note, however, that the absence is not automatically displayed in the absence calendar.
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