HR tasks can be monotonous if you fail to deploy efficient software. HRMS software solutions can automate tasks and offer precise results. It can boost the overall productivity and team efficiency.
Time is money, and HRMS is the latest payroll management system to simplify overtime salary calculation. Employee management is not easy, and payroll is an essential and crucial part of it. Accurate management and payroll calculation are crucial and can facilitate HR management’s tasks.
Invest in a simple payroll software that can eliminate the complications of inaccurate calculations. Invest in the latest HRMS module once, and it helps handle seamless payroll management tasks with the help of innovative and efficient software. The modern software system integrates well with the time tracking system, as it records time automatically. This helps calculate the time maintaining accuracy and ensures that employees get their deserved appreciation for overtime contribution in the workplace.
Calculating Overtime Salary in the UAE
The overtime calculation depends on Articles 67-72 of the UAE labour law. The factors influencing the calculation are:
- Number of extra working hours
- The basic salary pays of an employee
- Overtime formula type – Normal, Fridays, or on public holidays
The calculation of overtime salary in the UAE depends on the basic pay scale. For the regular overtime, it is basic salary X 12/365/8 X total overtime X 1.22 = the overtime payment. However, the overtime rate can vary depending on the time, which slightly varies from one organisation to another.
HRMS and Payroll Eases the Calculation Task
Reward employees for their hard work so that it is rewarding and motivating. Give the performance reward for the overtime an employee contributes to an organisation. Companies should have a fair compensation plan when employees offer extra work hours. The main idea behind using the latest HRMS software to calculate overtime salary is to automate the task.
The features also ensure there is no error or intervention and that the extra is correctly added to the payroll software system of every employee. Set the right overtime rule and the extra rate an employee would get for the additional work hours. The HRMS and payroll software should be linked with daily attendance devices to get real-time results.
However, when in the UAE, the additional work hours should not be more than two hours daily. If the extra hours are after the daily working hours, the employee should get 25% extra for the same. The organisation can pay extra or offer a compensatory day off. The additional pay rate can vary slightly from one organisation to another.
Introduce the latest HRMS and payroll management system to ensure the calculation goes smoothly. The latest features and functionalities allow easy integration with other software and track the pay tasks easily.
How is Investing in HRMS and Payroll Software Rewarding?
If you wonder how spending on the latest HRMS is worth it, the following can help.
- Be compliant with the labour laws
- Automate the time-tracking system
- It ensures accurate salary calculations
- The software offers real-time reports and data
- Ease of integration of HRMS with payroll software
Therefore, this is how the latest HRMS can simplify payroll tasks and upgrade them to the next level. The payroll tasks can streamline and reduce the effort and time to complete the same daily. This is how payroll processing makes it easier to handle core business activities efficiently. Therefore, it can ensure the correct and timely calculation of overtime salary.