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AnnouncementPayment of Overtime and Compensatory Premiums

The process for compensating employees who work more than their normal threshold of hours has been further refined as described below:


·         Employees who do not receive additional pay for overtime (but instead bank all additional hours as compensatory time to be used as paid leave) will now receive a compensatory premium during the same pay period when they bank 1.5 compensatory time.  This applies only if these employees are eligible for shift-related pay during a pay period.


·         The many employees who are paid cumulative bonuses will now receive premiums calculated for each period in which the employee works more than the normal number of scheduled hours.  Annual payments – including lump sum, merit pay, and certain other bonuses – will prompt a calculation of overtime or compensatory premiums.


Things you should know


·         Overtime payment is determined by the working week assignment in Planned Working Time (infotype 0007).  Our September 30, 2011, communication offers additional information.


·         You can now view the results of both overtime and compensatory-time premium payments during payroll simulation and in pay results.


The tutorials Verifying Overtime Calculation in AASIS and Payment of Compensatory Premiums to Eligible Employees illustrate how overtime is paid and compensatory premiums are calculated.