How to create and modify pay rules (feat. overtime, stat pay, and shift premiums)
Pay rules are a part of Hours Classification settings. To learn more about these settings, check out our About Hours Classification article.
Navigate to the Pay Rules section in Hours Classification to create or modify pay rules.
Modifying pay rules
1. If you wish to delete an existing pay rule, click the Trash icon next to it, then click Delete on the pop-up to confirm.
2. If you wish to modify an existing pay rule, click the Pencil icon next to it. We cover pay rule settings in the next section.
Creating pay rules
1. In the Pay Rules section, click + New pay rule.
2. Select the payroll organization for the new pay rule. Click Continue.
3. Create a pay rule name and pay rule abbreviation. We recommend creating names and abbreviations that make it easy to tell what the pay rule is. An abbreviation can be up to 5 characters.
4. Next, select the Trigger on which days of the week by clicking on the name of each day you want to select. When you select a day, it will turn dark blue. Click again to unselect. The rule will be triggered on the day(s) that you selected. You can select one, more than one, or all days.
5. To create a pay rule for a statutory holiday, select the day of the week, Holiday or both for the Trigger on which days of the week. For example, if you select Sat, Sun, and Holiday, the rule will be applicable for those two days and holidays such as Good Friday, Labour Day, Christmas, etc., provided these holidays are configured for the employee in HR.
To create a pay rule that will apply on a statutory holiday, select Holiday. You can also select days of the week and the rule will apply to all. For example, if you select Sat, Sun, and Holiday, the rule will apply on weekends and holidays such as Good Friday, Labour Day, Christmas, etc., provided these holidays are configured for the employee in HR.
6. Next, use the dropdown to Select the departments this rule applies to.
7. Next, use the dropdown to Select the classification tags this rule applies to. If you select All Classification Tags, the pay rule will not be dependent on tags.
8. Next, determine how hours will be accumulated under Accumulate all hours.
Choose Worked if this pay rule applies to all hours that are worked under the day(s) you selected. For example, if you want to pay employees a different rate on weekends, you can select Saturday and Sunday in step 4 and this option.
Choose Worked after if this pay rules applies to all hours worked after the amount you set. This is often used to create overtime rules. If you want to connect a pay rule with the option ‘Worked After’ selected to a pay code, ensure that “Include hours in pay rule accumulation “Hours worked after” is selected in pay code (for more information on this, check out step 5 in our How to create and modify pay codes article).
To learn how pay classes connect pay rules and pay codes, check out our How to create and modify pay classes article
You can also fill in multiple boxes for this option. For example, when creating an overtime rule, after selecting every day of the week you can put in “8 per day” and “40 per week”. This means an employee will get paid overtime both after working 8 hours in a day or 40 hours in a week.
Choose If start time and end time between if this rule applies to hours that are worked on the day(s) you selected that occur between the times you choose. For example, if you want to pay employees a different rate for a night shift, select all days of the week in step 4 and set the time as 9:00 pm to 6:00 am.
Choose If start time is between if this rules applies to hours that are worked on the day(s) you selected that begin between the times you choose. For example, if you want to pay employees a different rate for a shift that starts late at night, select all days of the week in step 4 and set the time from 10:00 pm to 2:00 am. Even if an employee works until 6:00 am, as long as their shift stars between 10:00 am and 2:00 am, all hours will be put into the pay code connected to this rule.
9. Click Create pay rule (or Save if you’ve been modifying an existing pay rule).
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