Overtime

Overtime records the extra hours an employee worked on a given day, as weekday or holiday overtime. Approved overtime is paid in the month's payroll run at the hourly rate times the overtime multiplier, or, if you prefer, paid in full straight away as a separate overtime payment before payroll.

Use this screen to see all overtime records in one place, add hours by hand, approve or reject them, pay approved overtime early, and correct or remove a record. HR officers and payroll staff use it while preparing the month.

Where to find it

• Sidebar: Payroll & Compensation → Overtime. URL: /overtimes.
• Overtime also arrives automatically from approved timesheets and from approved items in Attendance review. Pending overtime entries also appear in the Approvals inbox (only standalone entries; attendance overtime is decided in the attendance review).

The menu item appears when your plan includes overtime and your role has View overtime records (or the older View advances, deductions, tips, overtime permission). Opening the list needs View overtime records.

Permissions

Screen tour

Header: Overtime — Manage employee overtime records. Add Overtime is at the top-right (only if you can manage overtime).

The list shows 20 records per page, newest date first, with page controls when there is more than one page. There is no search or filter on this screen. Empty state: No overtime records.

Overtime statuses

Approve or reject a manual record

A record added here waits for a payroll approver. Open ⋯ → Approve or ⋯ → Reject (the Approvals inbox offers the same buttons). Only pending records can be decided: "Only pending overtime can be approved or rejected." An approved record is paid in the month of its date. Overtime that was approved from the timesheet or the attendance review skips this step.

Add overtime

1. Click Add Overtime (top-right).

2. Fill in the dialog:

   Field	Required	Rules / defaults	Notes
   Select employee	Yes	Active employees only, shown as Name (number).
   Date	Yes	Any date.	Payroll takes it into the month the date falls in.
   Hours	Yes	0.25 to 24, steps of 0.25.
   Type	Yes	Weekday (×1.25) (default) or Holiday (×1.5).
   Notes	No	Up to 255 characters.

3. Click Save. You see Updated successfully and the record appears as Pending. A record dated in a month whose payroll is finalized is refused.

An employee can have only one record per date and type. A second weekday record for the same day is refused with a message under Date saying overtime already exists for that employee, date and type. Edit the existing record instead.

Edit overtime

1. Click ⋯ → Edit on the row.
2. Change the employee, date, hours, type or notes. The same rules apply.
3. Click Save.

Editing doesn't change the status. A record that has been paid separately, or that was processed into (or is dated in) a finalized payroll, can no longer be edited or deleted: "Reverse the overtime payment before changing or deleting this record." or correct it with an adjustment instead.

Delete overtime

1. Click ⋯ → Delete.
2. Confirm Delete this record? — "Delete this overtime record?" — Delete.
3. You see Deleted successfully.

Deleting a timesheet record doesn't change the timesheet. If the timesheet is reopened and approved again, the record is recreated.

Pay overtime early

Sometimes overtime must be paid before the month ends, for example a weekend stock count paid in cash on Monday. Pay overtime records that payment against the approved overtime, so payroll does not pay it a second time.

1. Open ⋯ → Pay overtime on an Approved row that has no payment yet and is dated in the current payroll month (the run must still be Draft or Rejected, with nobody marked paid). You need the cash-disbursement permission.
2. The dialog Overtime Payment shows the employee, the date, the Overtime hours and the full amount (hours × hourly pay × multiplier; the amount cannot be changed or split).
3. Fill in Payment date (default today), Payment method (Cash or Bank) and Reference (optional).
4. Click Pay overtime. You see "Overtime payment recorded."

What happens next:

• The row shows "Overtime already paid: amount" and a receipt is available with ⋯ → Print (an A6 landscape voucher in your branding; see Documents and printing).
• The month's payroll keeps the full overtime in earnings, shows the paid amount in Overtime already paid, and subtracts it from what remains to pay. A USD 1,000 salary plus USD 100 overtime paid separately gives USD 1,100 gross, USD 100 already paid and USD 1,000 left to pay (before other deductions). The same line appears on the employee breakdown, the payslip and the payroll CSV.
• The record can no longer be edited or deleted.
• Sending the same payment twice does nothing: "This payment request has already been used."

Reverse payment (⋯ → Reverse payment, with a Reversal reason) cancels the payment while the payroll is still a draft. It is refused once the run is under review, finalized or paid: "Overtime payments cannot change while payroll is under review, finalized or paid." The reversal keeps the history and the receipt is marked void.

Other refusals: "Only approved, unpaid overtime that has not been settled through payroll can be paid.", "The amount must equal the full approved overtime amount. Refresh and try again." and "Overtime payments exceed the approved overtime or remaining payroll amount."

How overtime is paid

For each employee and month the run adds up approved/processed hours by type:

• Hourly rate = monthly salary ÷ work days per month ÷ work hours per day.
• Overtime pay = weekday hours × hourly rate × weekday multiplier + holiday hours × hourly rate × holiday multiplier.

Defaults: 30 days, 8 hours, ×1.25 and ×1.50 (see Payroll Settings). Timesheet overtime is always created as weekday overtime.

The run recalculates overtime only while it is Draft, Under Review or Rejected. Overtime approved after the run is approved is not added to that month; overtime that comes from the attendance review is added to the next open payroll as an adjustment. Overtime dated in a finalized month can no longer be entered.

Worked example 1: a manual entry, approval and early payment

Omar Haddad (salary AED 12,000, hourly pay AED 50) stayed 2 hours late on Thursday 15 October 2026 for a stock count at Dubai Main. Noura Al Zaabi clicks Add Overtime, picks Omar Haddad (1004), date 15/10/2026, 2 hours, Weekday (×1.25), note Stock count, and saves. The row shows Pending.

1. Khalid (finance, with Approve payroll runs) opens ⋯ → Approve: status Approved.
2. The company promised to pay it at once. Khalid opens ⋯ → Pay overtime: 2 h × 50 × 1.25 = AED 125.00; Payment date 19/10/2026, Payment method Cash, Reference PETTY-114; Pay overtime. Omar signs the printed A6 receipt.
3. In October payroll Omar's Overtime total includes the AED 125.00 and Overtime already paid shows 125.00, so his transfer is AED 125.00 smaller than it would have been.

Worked example 2: overtime through the timesheet and the attendance review

1. Omar's October timesheet has 2 overtime hours on 14 Oct and 1.5 hours on 21 Oct. His manager approves it.
2. Payroll & Compensation → Overtime now shows two Approved weekday records with notes Approved timesheet #….
3. Omar also worked 4 hours on UAE National Day. His check-in and check-out created an Overtime (holiday) item in Attendance review; Mariam approved it (4 h × 50 × 1.5 = AED 300), which created an approved holiday record here.
4. Noura opens Payroll & Compensation → Payroll Runs for October. Overtime total = 3.5 × 50 × 1.25 + 4 × 50 × 1.5 = 218.75 + 300 = AED 518.75. Adding the AED 125.00 manual record from the first example, Omar's October Overtime total is AED 643.75, of which 125.00 shows in Overtime already paid.
5. After approval, the run is locked and the records are counted as paid for October.

How it connects

• Timesheets: approving a timesheet creates approved overtime; reopening it removes the records.
• Attendance review: approved overtime items create approved records here.
• Approvals: pending standalone entries can be decided from the inbox.
• Documents and printing: the overtime payment receipt.
• Payroll Runs: approved overtime is paid; shown in Overtime total and on the breakdown.
• Payslips: Overtime Pay with weekday and holiday hours.
• Payroll Settings: multipliers, work days and hours.

Confirmations and outcome notices

Saving shows Updated successfully; deleting shows Deleted successfully. Field problems are listed at the top of the dialog and the first bad field is focused. If the connection drops you see Status not confirmed — click Check current status and look at the list before saving again, to avoid the duplicate-date error.

Tips and common problems

Related

• Payroll Runs · Timesheets · Attendance
• Additional Earnings · Payroll Settings · Payslips