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PAY_SG_OT_003 - Configure Overtime Compensation Calculation

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In this Customizing activity, you can determine how the system evaluates an employee's eligibility for overtime (OT) compensation, and how the compensation amount is calculated.

An employee is eligible for receiving OT compensation when the employee's monthly salary amount is less than an upper limit, which is defined in the law. For an eligible employee, the hourly rate used for OT compensation calculation is also restricted by a legal upper limit.

For a specific employee grouping for OT compensation, you make the following settings:

• Assign a wage type grouping of monthly salary

• Assign a wage type grouping of OT compensation

• Maintain the upper limit of the monthly salary for checking employee eligibility

• Maintain the upper limit of the hourly rate for OT compensation calculation

During the payroll calculation, the payroll function ROTEG performs OT compensation evaluation and calculation using the settings in this activity according to an employee's OT grouping.

For more information, see Overtime Compensation Calculation (Singapore) function (ROTEG).

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