Understanding Overtime

In Mexico, employees are paid overtime for:

  • Regular overtime

  • Holidays worked

  • Days off worked

To define overtime:

  1. Define the overtime calendar for your pay group on the Pay Group OVT Calendars MEX page.

  2. Define the overtime parameters for your pay group on the Pay Group OVT Parameters MEX page.

    This includes information such as the maximum overtime that is going to be paid double. For example, let's say that the maximum number of double hours of overtime per week is 9. If an employee works 12 hours of overtime in one week, then the first 9 hours will be calculated at a double rate, and the remaining 3 hours will be calculated at a triple rate.

  3. Record overtime hours worked for employees either daily or weekly on the Enter Overtime MEX page.

    When capturing the total number of overtime hours for a day, the system automatically splits the hours into double and triple rates, as defined by the maximum limits on double and triple hours, taking into consideration all the weekly and daily overtime parameters.

    The system captures the total number of overtime hours for a week in the same way as for a day, but splits the hours for the week, instead of for the day. For example, if an employee works 12 hours of overtime in one week, then the first 9 hours will be calculated at a double rate, and the remaining 3 hours will be calculated at a triple rate. Only the weekly parameters are considered for weekly overtime.

  4. Generate a report that details overtime for an employee on the Overtime MEX page.

    You can specify to generate the report daily (with detail) or weekly (without detail).