Setting Up Overtime Pay Rates and Assigning Resource Overtime Hours

Hi,

I will explain how can you assign overtime hours and overtime Pay Rate to Resource in MS PROJECT 2010

Now I will add Mary as a resource with \$100/hour as standard pay rate, and \$150 / hour as overtime pay rate:

Now I will assign Mary to the TASK 1:

You can see \$400 in the Cost field (5 days X 8 hours/day X \$100 / hour = \$4.000)

Now, I will choose the Gant chart view open the Task form ad a detailed view:

I will click ANYWHERE in the Task Form and then I will click on the Format Tab, in the Details Group –> WORK:

Now I will put 16 hours in the Overtime work field. It means that Mary will work 16 hours overtime:

It seems like nothing happened in the Gant chart? I will now click anywhere in the Gantt chart portion of the screen and I will get:

You can see that TASK 1 will have only 3 days duration. Why? Well, if you add overtime work on the task the same amount of work will be done but in shorter period.

I will now close the Task form:

and I will open the Resource usage sheet:

You can see 40 hours that in the Work field. Why? Because initially TASK 1 had 5 days duration (e.g. 40 hours). By adding 16 hours as overtime, TASK 1 will not last 40+16 = 56 hours, but those 40 hours will be done in shorter period.

Why 13.33 hours/day? 40 hours of total work – 16 hours of overtime work is 24 hours. 24 hours divided by 8 hours regular work per day is 3 days. O.K. we have 3 days duration. And Mary will work 8 hours each day (regular work) and (16 hours of total overtime / 3 days) = 5.33 overtime hours per day. So, 8 + 5.33 = 13.33.

Now, I will open the Cost table:

And I will get

Why? Well, Mary will work 40 hours on the TASK 1. 24 hours is regular work, and 16 hours is overtime work. 24 X \$100 (standard rate per hour) = \$.2400, 16 X \$150 (overtime rate per hour) = \$2.400. So, the total cost fore the TASK 1 is \$2.400 + \$2.400 = \$2.800.

Overtime work is complicated, so you should use it with caution!

See you!

Location: Zagreb, Croatia Occupation: Project Manager Interests: Project Management and MS PROJECT He was born in Zagreb, Croatia at 1963. After completing his college he started working on projects in different business areas (banking, manufacturing, automotive industry, distribution, oil companies, etc.) developing and implementing ERP systems into different companies. He has got a lot of experience working with people in different business processes and also possesses great knowledge in information technologies and financial services. Today he works as a business consultant, adn Project Manager in PERPETUUM MOBILE d.o.o. Zagreb. He is a regular lecturer for Project Management in MS Innovation Center in Varaždin, Logosoft Sarajevo in Bosnia and Herzegovina and SEAVUS GROUP in Skopje Macedonia. He was named the best lecturer of WINDAYS 2008 while his lecture was also voted as the best. In addition, he was in TOP 10 lecturers at the MS SINERGY 2009 and MS VISIA 2009, 2010. Shares first place as the best lecturer of KulenDays 2009 and 2010 and PMI Conference 2009 in Zagreb. He is also a regular lecturer in the MS Community. He is a Certified Accountant and a PMP (Project Manager Professional) and a PMI-RMP (Risk Manager Professional), MCP, MCT, and Microsoft Certified Technical Specialist - Microsoft Project 2010. From 01.01.2012 awarded with MVP (Microsoft Most Valuable Proffesional - Microsoft Project)!

9 Responses to Setting Up Overtime Pay Rates and Assigning Resource Overtime Hours

1. Himansu says:

Hi Himansu here please guide me how to assign overtime work to a resource to avoid over allocation if the task is fixed duration

After 26.08, because I’m at Vacation ’till them! Is it OK with you?

• Himansu says:

Its fine…. if you help me to solve this issue than surely i will wait for it

Hi, first I would like to say tanks for your above post.

Actually I have one question in mind, lets say if I have one task with 3 month duration, and for some reasons I have different overtime works over the task execution period, for instance in the first month 4 hours a day, second month 2 hours a day and last month 3 hours a day and lets say overtime pay rate through task duration is same or different as you wish. do you have any idea about how Microsoft project let’s to set up such condition ?

thank you

You should do it Manually throug Task Usage View!

3. Suasn Raatz says:

OK. I am entering in hours in overtime work field as the instructions note but when I view the cost table, only the regular hours are calculated in the cost. This task is fixed duration for the entire month. The reason is that as overtime is added more volume is processed and the schedule does not change. We are measuring/planning resource cost per task for each month.How do I get a total cost for regular and overtime hours spent on this task?

I do not understand your problem!
If you enter a Task with fixed duration (for example ! month) and then add a Recource, you will get 160 hours! If you put in the Overtime field, for example 80 hours, The task will be ended sooner, and you will see in the Cost Table Cost for regular + overtime work! I know that because I tried this a minute ago! Can you give me some more information please?
Regards

4. Donny says:

Great site you got here. How do you setup overtime rates properly so you get the 1.5X for the first 2hrs, then 2X thereafter. Say, if you work back 4 or 5 hrs at end of a 8hr day, you get 2hrs at 1.5Xpay then 2-3hrs at 2Xpay.
I can setup the 1.5X rate in the feild box like you have shown here, but i cant get another box for the second 2X rate.
Basically I have a project and a few days in succession i need to assign a few people to work back a few hrs to get the job done.
Cheers