# Overtime tiers

**For:** Admin

Overtime in {{ app_name }} is tiered: the first batch of hours over the limit is paid at one multiplier, the next batch at a higher one. Five tier fields cover the common cases — daily, weekly, and consecutive days.

## What it does

Five separate tier blocks live on the work rule:

- **OT tier 1 — daily.** Hours over the daily limit (and up to a second daily threshold) are paid at this multiplier — typically 1.25×.
- **OT tier 2 — daily.** Hours past the second daily threshold pay at a higher multiplier — typically 1.5×.
- **OT tier 1 — weekly.** Hours over the weekly limit (up to a second weekly threshold) at the tier-1 multiplier.
- **OT tier 2 — weekly.** Hours past the second weekly threshold at the tier-2 multiplier.
- **Consecutive-day OT.** A multiplier that kicks in once a person has worked N days in a row without the required weekly rest.

Each tier has two fields: the threshold (the number of hours, or days, that triggers the tier) and the multiplier (what the base hourly rate is multiplied by inside that band).

## When it kicks in

Tiers are evaluated on submitted time entries, not on the schedule. The rules:

1. {{ app_name }} sums the hours actually worked for the day or the week.
2. If the total exceeds the daily / weekly limit set under {doc}`daily-and-weekly-limits`, the excess is bucketed into tier 1 first, then tier 2.
3. Each bucket multiplies the base rate. Tier 2 multiplies the *base* rate, not the tier-1 amount — there's no compounding.
4. Consecutive-day OT is checked separately, and applied to the qualifying day in addition to any daily / weekly tier on that same day.

A worked example: base rate CHF 30.00, daily limit 8h, tier 1 from 8h–10h at 1.25×, tier 2 from 10h+ at 1.5×. A 10.5h day pays 8h × CHF 30.00 + 2h × CHF 37.50 (tier 1) + 0.5h × CHF 45.00 (tier 2).

## How it shows in the app

- **Timesheet.** Submitted rows show the tier breakdown when you open the row — base hours, tier-1 hours, tier-2 hours, consecutive-day hours.
- **Overtime report.** One column per tier, totals per person and per period.
- **Payroll export.** Each tier flows to its own pay code so your payroll provider can process the multipliers downstream.

## Related

- {doc}`daily-and-weekly-limits`
- {doc}`premiums`
- {doc}`manage-work-rules`