Just been reading HMRC's updated guidance which confirms that overtime payments can be included in CJRS salary calculations where the employer was contractually obliged to pay the employee at a set and defined rate for the overtime worked (rather than where the employer was contractually obliged to offer the overtime).
For our staff, their employment contracts provide for 160 basic hours each month, with overtime paid for any additional hours worked. There is no contractual obligation to offer overtime, but the reality is that employees regularly work overtime most months.
I've not included overtime in my calculations to date, instead using the 160 basic hours as the basis of our claim due to the fact that it's at the employer's discretion whether or not to offer overtime.
No overtime was paid in February (a quiet month), therefore to claim for overtime the rules for 'variable rate' employees would have to apply. What do others think - are they fixed rate or variable rate employees?
Employees' salaries have been topped up to 100% of their basic hours, which would cover 80% of their average monthly basic hours + overtime hours.