This activity is used to register a Specified Overtime Wage Code Sequence. A specified overtime wage code signifies a wage code, described with one or two other wage codes in one or more sequence steps. When the calculation program comes across a specified overtime wage code, this is translated to the overtime and (optional) the increment wage codes that are registered in the sequence step. Specified wage codes are used solely in connection with overtime and recognized by the wage type Specified. They are used in the day schedule day type in the following two cases: (1) Overtime pay is controlled by the number of overtime hours worked, and (2) Overtime pay is an addition to the standard wage.
Overtime pay is controlled by the number of overtime hours worked
For example, when the first two hours of overtime are remunerated by "Overtime 1", irrespective of when it was earned, the next two hours are remunerated by "Overtime 2" and then by "Overtime 3". The same specified wage code is registered in the intervals before and after the normal time. Since the same wage code is employed, all overtime is first totaled for the specified overtime wage code before being translated to the regular wage codes. The hours are distributed to the different overtime rates according to the steps by which you have described the wage code.
Example
Working hours: 8 - 17 with a lunch break between 12 - 13
Overtime agreement: First two hours OT-1, next two hours OT-2, then OT-3 (OT-1, etc., is the wage code identity). The overtime wage codes include the base payment and the additionals.
This will require the following specified wage code, here identified by S-OT (Specified Overtime):
Seq Overtime Wage Code Increment Wage Code Max Hours
1 OT-1 2,00
2 OT-2 2,00
3 OT-3 24,00
The Max Hours value for the last sequence should be set to a higher value in order to cover a long interval of overtime work. You can also use this value to maximize the total number of overtime hours personnel are permitted to work.
Overtime pay is an addition to the standard wage
In certain cases, both the standard wage and the overtime increment are accounted to the payroll system. This is common for employees who receive an hourly rate. A specified wage code must be used in this case, since a day type cannot contain more than one wage code per interval. You need two wage codes to account for both the base wage and the overtime increment. Specified overtime wage codes allow this.
Example
Working hours: 7 - 16 with a lunch break between 11 - 12
Overtime agreement: Overtime is paid with the base payment (wage code 010) and an overtime additional according to the following:
OT-1 from midnight to 7:00, OT-2 from 16:00 to 20:00, OT-3 from 20:00 to midnight (OT-1, etc., is the wage code identity)
This will require the following specified wage codes, here identified by S-1, S-2 ,and S-3:
S-1 Overtime - 1
Seq Overtime Wage Code Increment Wage Code Max Hours
1 010 OT-1 24,00
S-2 Overtime - 2
Seq Overtime Wage Code Increment Wage Code Max Hours
1 010 OT-2 24,00
S-3 Overtime - 3
Seq Overtime Wage Code Increment Wage Code Max Hours
1 010 OT-3 24,00
In this example, you need three specified wage codes to cover the overtime agreement. The Max Hours are all set to 24 hours. This will allow you to reuse the specified wage codes in any day schedule with the same overtime agreement. Also refer to the Day Schedules section.
Before registering a specified overtime sequence, the following must have been completed:
There are no system effects.