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Overtime hours for salaried shift workers

I need to calculate the number of overtime hours worked for salaried workers that work shifts

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The situation is, we have staff who are contracted to work 37.5 hour weeks for a fixed monthly salary. The service is provided 24/7. The staff work a combination of 7.5 and 9.5 hour shifts and an additional payment is made for hours worked over 37.5 hours per week averaged over the month. I need to work out how many additional hours should be paid. Hours are recorded on weekly timesheets and calendar months have odd days e.g. the pay calculation period from 26 September to 25 October has 4 Monday to Sunday weeks and an odd weekend. For full weeks I can compare the hours worked in that week with 37.5 and over the 4 week period come to a 4 weekly total. What should I do with the 2 additional days? Compare hours worked in those days to 37.5/5*2 or 37.5/7*2?

Overtime premium is not an issue, overtime is paid at plain time rates.    

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By accountaholic
29th Oct 2020 13:37

You can use 5 or 7 as long as you use the same basis for the opening week of the next month, and it will then catch up automatically. So if using 7 days, you use 2/7ths in October, and then 5/7ths for the balance of the first week (26/10 - 30/10) of Oct/Nov pay. You might end up with negative overtime in some "part-weeks", but cumulatively you'll find it is correct.

Or you could make it easier by paying basic salary every month, but overtime on a 4/4/5 week basis to keep the calculations easier by always comparing with a standard 37.5 hour week.

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By bendybod
05th Nov 2020 11:17

Personally, I would make my life easy and pay overtime for the number of extra hours worked in the calendar month per timesheets.
Assuming that the timesheets give daily hours, presumably you know whether the person was due to work 7.5 or 9.5 hours each day so overtime is any hours for that day that are over and above what they were contracted to do.
So on the timesheets I would have a breakdown for contracted hours and a box at the end of each day for overtime hours. Add up the figures in that row over the month and that's the overtime you pay.
To keep life simple, if there were any deductions from normal hours I would keep those separate.

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