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Create an overtime category

How to add a new overtime category in Sage HR.

Written by Oliver Cook

You can easily create new overtime categories to use for an overtime policy.

  1. Go to Settings.

  2. On the settings menu, click Timesheets.

  3. Click Overtime.

  4. Click the Overtime categories tab.

  5. Click Add overtime category.

  6. Name the overtime category.

  7. Specify an overtime range – This range of hours is tracked after the working pattern. If you type in, for example, 2, then 4, then the second to fourth hours of overtime work will fall into this category.

  8. Select what type of days the overtime category will apply to:
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    • Working days - Days that have pre-filled hours from working pattern or shift scheduling

    • Non-working days and holidays - Days that don't have pre-filled hours or are public holidays

    • Custom working days - Days that have been specified in the working pattern
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  9. Click Save.

Example

James has a working pattern that makes an 8-hour working day. This working pattern applies every day, from Monday to Friday. His Sage HR account has the following Overtime categories created:​

  • Rate 1 - From 0h to 2h - Applies on Working days

  • Rate 2 -From 2h to 6h - Applies on Working days

  • Weekend & Holiday rate - From 0h to any - Applies on Non-working days & holidays

If James worked 10 hours (8h of his contracted hours and 2h as overtime), then his manager would then pay him for a full-day work as well as for 2 hours extra, according to Rate 1 - this is because these hours would be categorised in the Overtime category named Rate 1.

Now, if James works 2 hours more on the same day (making the 4 hours of overtime and 12 hours of work in total), then the last 2 hours would get categorised as Rate 2.

Bar chart showing a total of 12 hours. 8 hours was work according to a working pattern. 2 hours at a a 'rate 1' overtime. 2 hours at a 'rate 2' overtime.


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Eventually, if James would come to work on Sunday (as we agreed earlier, James has a standard working week, Monday to Friday, therefore Sunday is not a working day in his working pattern), then all of his working time would be rated at Weekend & Holiday Rate automatically.

📎NOTE: There is a maximum limit of 20 categories you can add to an overtime policy.

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