Skip to main content

Payroll Processing: Include allowance in basic pay to calculate overtime amount

Overtime Calculation and Allowance Inclusion Issues

Updated over 2 weeks ago

In accordance with Amendments to the Employment Act 1955 & 1st Schedule, the new minimum capping limit for calculation for ORP (Overtime Rate of Pay) is 4000.00. The maximum number of hours a worker can work overtime per week will be 45 hours per week. The new calculation for hours per year worked in OT will be 2340 hours per year. To do the settings, you need to go to:

  1. Housekeeping, Setup, Table Maintenance, Allowance Table.

  2. Choose the allowance amount that you want to include.

  3. Mark OT1 to OT6.

  4. Click Next.

  5. Click Next.

  6. Under the Type column, change 'V' to 'F'.

  7. OK.

  8. Cancel.

  9. Go to 2nd half Payroll, Process Pay, Ok.

Did this answer your question?