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By definition, overtime is the work submitted by the worker that is incompatible with the regular working schedule you set, but within ruleset of your choosing, workers can clock extra time in and earn corresponding payments.
You can process overtimes on daily and weekly basis.
If you select daily, your configurations for expected minimum working hours, and maximum allowed overtime threshold would be for a work day. Workers are responsible for submitting their overtimes each day.
If you select weekly, again workers are responsible for submitting their overtimes daily, but your policy configuration will work with all activity of the worker during the week.
Example: If you set maximum overtime as 8 hours per week, then workers can submit up to 8 hours of overtime in a work week. Regardless of which day they are submitting it.
How unit time payment is calculated?
Overtime payments are calculated based unit time earnings of workers and the selected multiplier in the time tracking policy. We use the subjected hourly salary of the worker (Derived from the expected regular hours in a work period - day, week or month - divided by the total hours in the period)
For Flexible schedule type: expected regular hours is stated in Working Hours Granularity section.
For Scheduled Window and Total Hours schedule types: Sum of the working hours in each day is multiplied by their count in a month to calculate the monthly expected regular hours.
Ex: Monday to Friday, 8AM - 5PM regular working hours - This month has 4 full weeks + one Monday + one Tuesday. Then the monthly regular hours is: (4 x 45) + 9 + 9 = 198 hours
See how hourly salary is derived for each worker type in the FAQ. (To be linked to FAQ)
How is hourly payment amount calculated with daily working hours you set?
How is hourly payment amount calculated with daily working hours you set?
Employee on Record, Direct Employee, Fixed Contractor, Pay As You Go Per Month
Payment of the Worker / Daily Working Hours x work days of the Month
Ex: 1000$ per month, Monday to Friday, 8AM - 5PM regular working hours, current month: June 2026
1000$ / 9 daily hours x 22 work days = 3.96$ per hour
Pay As You Go - Per Day
Ex: 10$ paid daily, total 5 hours regular expected in a day
10$ / 5 = 2$ per hour
As mentioned in the main article, for Pay As You Go - Per Hour and Per Minute contractors you can keep the default value since daily working hours is not used in hourly payment calculation. For these contract types, we directly calculate from the unit payment amount, multiplied with submitted work duration.
Ex: 10$ per hour, submitted 3 hours overtime; overtime payment amount = 30$
What is daily threshold?
Threshold defines when overtime starts. Set your thresholds depending on your schedule type:
Flexible
Threshold sets the minimum hours a worker must submit (per day or week) before becoming eligible for overtime
e.g. Threshold = 5h → overtime starts after 5 hours of submitted time
Schedule Window
Threshold sets the minimum hours a worker must submit outside regular working hours before overtime begins
e.g. 9AM–5PM, Threshold = 2h → worker must submit at least 2 hours outside the schedule window to become eligible for overtime
If a worker doesn't clock out at end of day, overtime starts at regular end time + threshold (e.g. 7PM)
Total Hours
Threshold sets the extra hours a worker must submit beyond regular daily hours before overtime begins
e.g. 6h/day regular, Threshold = 2h → overtime starts after 8 hours of total submitted time
Visit FAQ section for more examples on how threshold is used.
Here are some examples of daily and weekly threshold usage for different contract types: Fixed Contractor, Flexible Working Hours.
Daily:
You set threshold to be 5 hours.
Since it’s a flexible policy, there is no set regular active time interval or duration from the worker. Thus, threshold represents the minimum hours that worker should submit, before counting sessions as overtime.
Worker should enter minimum of 5 hours combined in a day to submit overtime.
Weekly:
You set threshold to 20 hours.
Worker should submit minimum of 20 hours combined in a week, to count other submitted hours in the week as overtime.
Ex 3: Pay As You Go Per Hour, Total Hours custom schedule (2 hours on Monday, 5 on Tuesday, etc.)
Daily:
You set the threshold to 1 hours.
In each day, for this example on Monday, worker should complete the expected 2 hours of regular working time, then +1 hour of threshold, to start overtime session for Monday.
Weekly:
You set threshold to 10 hours.
Worker should submit combined expected regular hours (Monday + Tuesday + Wednesday…) in a week, + the weekly threshold to count overtime.
How to add a maximum amount of overtime hours
Enter the maximum hours of overtime work submission per day or per week the worker can submit.
Overtime Multiplier
If you want to define a scaled payment rate for overtime work, you can choose the multiplier that will scale the hourly payment amount upon your choosing factor.
Overtime multiplier is the coefficient that is used for calculating the overtime payment, derived from the unit payment amount (hourly or minutely earning).
We offer x1, x1.25, x1.5, x1.75, x2 as predefined multipliers for you to select. Or you can enter a custom multiplier if predefined set does not meet your needs.
As an example; a direct employee with 10$ hourly earning with x1.5 multiplier will have 15$ as his hourly overtime payment amount.
Now you are done with configuring your schedule and overtime policy. Now its time to set up how will you collect time tracking sessions, and which permissions your workers will have over their submissions.