Ordinary Penalties and Daily Overtime Example

When to use this

Use this pattern when a formula needs ordinary hours, penalties for certain times or days, and daily overtime after a set number of hours. This example is based on a common award-style setup:

Weekday ordinary hours from 08:00 to 16:00.
Weekday early and late penalties.
Saturday and Sunday rates.
Daily overtime after 7.6 hours.

Before You Start

Create or open the Smart Formula from Smart Formulas > Configure. If pay item names need an award prefix, confirm the formula details before adding rules. See Configure Smart Formulas.

Example Setup

Rule	Key Settings	Result
Base rate	Rule Type `Base` Rate type `Rate per unit`	Sets the default rate shape for the formula
Weekday ordinary	Rule Type `Ordinary Time` Days `Mon-Fri` Period mode `Time` Time `08:00-16:00` Rate type `Rate per unit`	Pays weekday ordinary hours
Weekday early penalty	Rule Type `Ordinary Time` Days `Mon-Fri` Period mode `Time` Time `00:00-08:00` Rate type `Multiple` Multiple `1.1306`	Applies the early penalty period
Weekday late penalty	Rule Type `Ordinary Time` Days `Mon-Fri` Period mode `Time` Time `16:00-00:00` Rate type `Multiple` Multiple `1.1306`	Applies the late penalty period
Saturday ordinary	Rule Type `Ordinary Time` Days `Sat` Period mode `Hours` Hours `0-7.6` Rate type `Multiple` Multiple `1.4348`	Pays the first 7.6 Saturday hours
Sunday ordinary	Rule Type `Ordinary Time` Days `Sun` Period mode `Hours` Hours `0-7.6` Rate type `Multiple` Multiple `1.8696`	Pays the first 7.6 Sunday hours
Weekday overtime first 2 hours	Rule Type `Overtime (Daily)` Days `Mon-Fri` Period mode `Hours` Hours `7.6-9.6` Rate type `Multiple`	Pays the first 2 overtime hours
Weekday overtime after 2 hours	Rule Type `Overtime (Daily)` Days `Mon-Fri` Period mode `Hours` Hours `9.6-24` Rate type `Multiple`	Pays overtime after the first 2 overtime hours
Weekend overtime	Rule Type `Overtime (Daily)` Days `Sat-Sun` Period mode `Hours` Hours `7.6-24` Rate type `Multiple`	Pays weekend hours above 7.6 as overtime

Set rule priority when two rules could match the same hours. For this pattern, keep ordinary rules before overtime rules so the base hours are allocated before overtime tiers.

Worked Example

If an employee works Monday from 01:00 to 13:00:

Output Line	Hours
Weekday early penalty	7
Weekday ordinary	0.6
Weekday overtime first 2 hours	2
Weekday overtime after 2 hours	2.4

If an employee works Saturday from 01:00 to 13:00:

Output Line	Hours
Saturday ordinary	7.6
Weekend overtime	4.4

Test the Example

Before publishing:

Open Smart Formulas > Simulate.
Select the draft formula.
Add one weekday shift and one weekend shift.
Click Run Simulation.
Check that ordinary, penalty, and overtime lines match the expected output.

Review the result before assigning the formula to employees.

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Ordinary Penalties and Daily Overtime Example

When to use this

Before You Start

Example Setup

Worked Example

Test the Example

​When to use this

​Before You Start

​Example Setup

​Worked Example

​Test the Example

When to use this

Before You Start

Example Setup

Worked Example

Test the Example