How to apply Overtime, and Double time rates in MS PROJECT 2010

 

Hi,

one of my Blog reader has a Problem. She has Project and she must apply three different Pay rates for Resource on the Task in MS PROJECT 2010.  Here is an example:

John is working on task, and it will have Duration = 14 days! John will work from Monday to Sunday 12 hours per day! Regular work is 8 hours per day, and 4 hour per day are overtime work. BUT! Every Sunday John will earn double time fee.

OK! Firs we have to SETUP our Regular work:

image

then:

image

Now I will setup working time in my Calendar:

image

 

I will add a brand new Task in my Project:

image

 

Now I will add John as Resource:

image

 

Notice the figures in Cost Rate Table:

  • From Project start 30.01.2012 John will be paid $100 per hour for Standard work (8 hours per day), and $150 for Overtime work (4 hours per day)
  • At Sunday, 05.02.2012 John will be paid $200 per hour for Standard work (8 hours per day), and Overtime work (4 hours per day). This is what we can call Double Time Rate
  • From Monday till Saturday (06.02.2012-11.02.2012) John will be paid $100 per hour for Standard work (8 hours per day), and $150 for Overtime work (4 hours per day)
  • At Sunday, 12.02.2012 John will be paid $200 per hour for Standard work (8 hours per day), and Overtime work (4 hours per day). This is what we can call Double Time Rate

OK! Now I Will assign John to the Task:

image

Now I will choose the Cost Table:

image

and I will get:

image

Total Cost is $12.800! Why?

  • From Monday, 30.01.2012 till Saturday, 04.02.212  (6 days * 8 hours per day  = 48 hours), pay rate is $100. 48 hours * $100 = $4.800
  • At Sunday, 05.02.2012, pay rate is $200. 8 hours * $200 = $1.600
  • From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 8 hours per day = 48 hours), pay rate is $100. 48 hours * $100 = $4.800
  • At Sunday, 12.02.2012, pay rate is $200. 8 hours * $200 = $1.600
  • $4.800 + $ 1.600 + $4.800 + $1.600 = $12.800

Here is the Task Usage:

image

But, where is the Overtime rate applied? NOWHERE! Why? Remember that you should assign overtime work by your own. That means, if someone will work 12 hours on a task per day, it doesn’t mean that MS PROJECT 2010 will charge 4 extra hours with overtime rate.

Now, I will put overtime work in MS PROJECT 2010:

image

 

Now I will click anywhere in Task Form, and on the format Tab select Work:

image

and I will get:

image

 

Now what? John has to work 12 hours per day, and 4 hours will be overtime. 14 days * 12 hours per day = 168 hours. 14 days * 4 overtime hours per day = 56 hours. I will put those figures in Task Form:

image

and I will get:

image

Now, the Total Cost is $21.600! Why?

  • From Monday, 30.01.2012 till Saturday, 04.02.212 (6 days * 8 regular hours per day = 48 hours hours), regular pay rate is $100. 48 hours * $100 = $4.800
  • From Monday, 30.01.2012 till Saturday, 04.02.212 (6 days * 4 overtime hours per day = 24 hours), overtime pay rate is $150. 24 hours * $150 = $3.600
  • At Sunday, 05.02.2012, pay rate is $200 (regular and overtime) . 12 hours * $200 = $2.400
  • From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 8 regular hours per day = 48 hours hours), regular pay rate is $100. 48 hours * $100 = $4.800
  • From Monday, 06.02.2012 till Saturday, 11.02.212 (6 days * 4 overtime hours per day = 24 hours), overtime pay rate is $150. 24 hours * $150 = $3.600
  • At Sunday, 12.02.2012, pay rate is $200 (regular and overtime) . 12 hours * $200 = $2.400
  • $4.800 + $3.600 + $2.400 + $4.800 + $3.600 +  $2.400 = $21.600

Let’s look at the Task Usage View:

image

You can see that Cost per day (except Sunday) is $1.400. (8 hours * $100) + (4 hours * $150) = $1.400. At Sunday Cost is 12 hours * $200 = $2.400.

 

That’s it.

Regards!

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About Nenad Trajkovski

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)!
This entry was posted in MICROSOFT PROJECT, Microsoft PRoject 2010, MS PROJECT 2010, MS PROJECT 20101, PMI, PRoject Management and tagged , , , . Bookmark the permalink.

30 Responses to How to apply Overtime, and Double time rates in MS PROJECT 2010

  1. Thu Lam says:

    The example like your. But i want to put overtime work for the start day and the finish day. it mean overtime is 8 hour, 4 hour for start day, 4 hour for finish day. And overtime rate start day diffirent finish day. Pleas hepl me

  2. Aniruddha gupta says:

    Thanks Mr. Nenad.

  3. Sharon Santhana says:

    Hi Nenad, again you are bloody amazing! I didn’t understand this overtime thing until now! Thanks so much! I have one question though. How do you keep track of each resource and their overtime? I mean, like do I have to manually check on each resource as they work, or is there a column (of which I am trying to see but to no avail) that I can use to calculate the overtime rate for me at any given time? If I need to use a Custom Field, how do I calculate overtime for each of them? Ooo Hope you can help 😀 Thanks so much! xxx

    • Nenad Trajkovski says:

      No! Use Resource Usage View. Apply Usage Table. There add columns: Overtime Work Overtime Rare, and Overtime Cost! For Each Resource for Each Task enter Overtime work, and you will see Overtime Cost!

      Does this help?

  4. Owais says:

    Hi Is it possible to enter cost rates like this:
    9:00 to 5:00 normal rate 100
    6:00 to 10:00 overtime 150
    11:00 to 12:00 double rate 200

    • Nenad Trajkovski says:

      No, sorry, it is not possible to do that

      • owais malick says:

        Hi Nenad Thanks a lot for the feedback. In that case what is the work around becaus this is a common practice in Australia. Regards Owais Date: Wed, 26 Mar 2014 08:19:54 +0000 To: owais_malick_1999@hotmail.com

  5. john says:

    bit confused, according to another topic for you, i thought as long as we added overtime hours the total duration of the task should be reduced, why it is still 14 days?

    • Nenad Trajkovski says:

      See at the picture! I raised work from 112 to 168 hours, and THEN put overtime hours to 56. So forumla for duation is: (Work hours – Overtime hours) / 8 = (168-56) /8 = 112 / 8 = 14 days. The duration will be shortened if I didn’t touch Work but increased Overtime hours.
      Hope this helps!

  6. paul przekowiak says:

    Hi Nenad,

    Thanks a lot for all posts written

    Please, could you help me to better understand the calculating methods of MS Project because I don’t well understand MS Project behaviour: To explain my problem, here is my context :
    ————————————————
    CONTEX
    ———————————————–

    Calendar : Std (08:00-12:00 / 13:00-17:00) assigned to all tasks

    Resource R1 :
    Calendar standard excepted for February 10 2014 with working time 08:00 – 12:00

    Capacity ___
    For February 10, 2014 = 100%
    For February 11 to 15, 2014 = 50%

    Cost rate___
    for February 10 , 2014 Std rate 10€ and overtime rate 20€
    Cost for February 11, 2014 std rate 20€ overtime rate 40€

    Auto schedule activated

    Task 1 : constraint Start not earlier than February 10, 2014 08:00
    finish date February 11,2014 17:00
    fixed Work = 15h

    For the Gantt Chart, I display Resource usage view => 3 panels + 1 chart

    – On the left detail part, I enter 7h on the overtime work field (after manual insert of this field)
    – On the right part of the resource usage view, I enter for :
    February 10 , work 8 => overallocation automatically calculated = 4 => Ok
    February 11, work 7 => overallocation automatically calculated = 3 => Ok

    ———————————————–
    PROBLEM
    ———————————————–
    But MS project calculates also overtime work, and I don’t understand how because
    For February 10 , overtime work = 3,28h
    For February 11, ovt work = 3,72
    Firstly, no way to change this repartition, automatically calculated. Impossible to type data on ovt work field
    Secondly, it’s better to overload the ovt work of the Feb. 10 because this ovt rate is lower than the ovt rate of th Feb.11
    Finally the total calculated cost by Project = €327,19 but according to my own calculation it should be egal to €334,40
    Feb 10 = 4h std time x 10 std rate + 3,28h ovt x 20 ovt rate = €105,60
    Feb 11 = (4 x 20 ) + (3,72 x 40) = €228,80
    Total cost = €334,40

    Please, could you help me to better understand the calculating methods of MS Project

    Sorry for my approximate translation

    Thanks a lot
    Paul PRZEKOWIAK

  7. bharanikumar says:

    if two activity 6 hours and 6 hours for one more then how?

    • Nenad Trajkovski says:

      I don’t understand your question! COuld you be more specific?

    • Susan Raatz says:

      I was pretty confused by overtime hours. Maybe it will help to explain that OT hous are a subset of work hours. E.g., if 14 hours total were worked and 2 of those hours were OT, you enter 14 in Work field and 2 in OT field. Now, if you don’t want to go with Standard OT rate, you can assign any rate to a task but again this is tricky. You need to assign the resource to the task, then go to task usage view, select the resource and double click. You will see ‘cost rate table’ on the general tab of the pop up box. You can select the appropriate rate (A,B,C, etc.) from there. You need to load the rates in the resource sheet view first. Hope that helps. Took me forever to figure it out.

  8. galadar says:

    Hi dear
    first I would like to say thanks for your above post, after that I would like to share one question with you which I have in mind, it is also something about cost calculation that’s why I am asking here:
    How to set up different pay rate units such as ($/m, $/m2, $/m3, $/ton and so) … and that’s it. you know in most construction projects like building, roads, tunnel, canal even dam constructions cost of much of items such as excavation, drainage and so will calculated based on different pay rates as indicated above. for example if I want to setup cost of “excavation” task how I suppose to do that, if I have to setup unit pay rate of this task in resource sheets ? so which kind of resource I suppose to assign (work, material or cost resource) and how I use different pay rate ? or if I suppose to setup this kind of cost in different place, where is that place ?

    with thanks and respect …

  9. Suasn Raatz says:

    Thanks for this information! My question is regarding cost per task. I have temp employees working overtime. In a given week they are paid overtime rate for hours over 8 per day. In the same week they could leave early so they may have a day where I need to assign $0 for 4 hours. I entered a task called Unpaid Time so I could measure how many hours they take off but project is not letting me assign rate table cost of $0. Do you know how to report this? Thanks again!

  10. Igor says:

    Hello Nenad Trajkovski,

    It’s a great blog you have over here.

    About overtime, I tried to apply 12 hours a day on Saturday and Sunday, it’s a 2 day work (driving car) and It allocates 24 hours on Saturday. Both days are dayoff (rest time), so it’s 24 hours overtime rate. Is there a way to allocate 12 hours a day?

    Thanks

    • Nenad Trajkovski says:

      Let me clear one thing out! You want to drive your car at Saturday 12 hours and Sunday 12 hours! And 12 hours per day are overtime?

      • Igor says:

        Yes, that’s right. Saturday and Sunday are days off, so if the I work that days it’s overtime. I can’t work more than 12 hours, according to the law, so how can I make it happen? When I do it, the microsoft project used to change the duration (which is fisically impossible) or It used to allocate to work 24 hours at Saturday.

      • Nenad Trajkovski says:

        I wrtoe a post about this, and it will be published at Wednesday, 24.10.2012

  11. Anna says:

    Hi, do you know how to apply 3 rates in one working day.
    EG on a 12 hr shift,
    upto 8hrs use Std Rate,
    8-10hrs use Overtime Rate,
    10-12 hrs, use “triple time Rate”

  12. hennry says:

    Hai Mr. Nenad Trajkovski; I’m Hennry from Indonesia; I have problem with Peak resources;
    at the beginning I have 200% carpenters; and because of some task so he overlocated and got the red mark; I try to resolve by add 200% carpenters, the red mark disappears, but there is information peak for the carpenters are 600%; so I arrange for the 4 carpenters to different days, but I still not sure about peak. Would you help me please ? thank’s in advance, best regards,
    hennry

  13. Gordon says:

    thanks for the info.
    I am trying to update and add OT to a task that has already started.
    I cannot seem to add hours to the OT Work Field.
    I can reduce the work hours, but when I attempt to put those hours into the OT Work fild the hours will not add. Any Ideas? -Gordon

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