Understanding Overtime Pay according to the BVI Labour Code
* This article is related only to BVI Payroll.
Overtime is paid under the following conditions:
1. Employee works more than 8 hours a day
2. Employee works more than 40 works a week
3. Employee works on a day he/she is not scheduled to work
1. Employee works more than 8 hours a day
Once an employee works more than 8 hours with in a 24 hour period, that excess time is considered overtime even if total hours worked per that week do not exceed 40 hours.
2. Employee works more than 40 works a week
Once an employee works more than 40 hours within a 7 day period, they are entitled to overtime. ViHRMS requires admin users to set the Regular Working hours, and also to set the day when payroll cuts off. Both are required done in general settings to allow the system to calculate regular and overtime pay appropriately.
ViHRMS calculates weekly overtime using the following formula:
[[[[Weekly Overtime = Total working hours - (40 Hours + Daily Overtime)]]]]
[[[[* If the payment frequency is set to Bi-Monthly (paid twice per month on a specific date), employees will sometimes have more than 40 hours per week of regular working hours]]]]]
3. Employee works on a day he/she is not scheduled to work
When an employee is called into work on a day that he or she is not scheduled to work, the hours worked on that day will be paid using the overtime rate.
When an employee is called into work on a day that he or she is not scheduled to work, the hours worked on that day will be paid using the overtime rate.
Correct settings in the VIHMRS system allows the system to do all the above calculations automatically.