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Set up Weekend, Public Holiday & Overnight Penalty Rates

AJ Clugston avatar
Written by AJ Clugston
Updated over 2 weeks ago

In Droppah, each team member has a base hourly rate. Think of this as the foundation. You then create rules for things like overtime, penalty rates, public holidays, and allowances. These rules add extra layers on top of the base rate to calculate the true cost of a shift.

When you build a roster, Droppah applies your rules automatically, working out which hours should be paid at the base rate and which attract higher rates or allowances.

This guide will show you how to set up rules for overnight, weekend, and public holiday shifts.

Step 1: Create an Overtime Ruleset

In Manage → Overtime rulesets, click New Ruleset.

For this example, we will call the ruleset "Casual Intro - Level 1".

Step 2: Add Rules to the Overtime Ruleset

We will add four rules to this ruleset. Click + Rule and create the rules using the following details:

1. Saturday Penalty Rate
Base rate multiplied by 1.2

Rule Name:

Saturday Penalty Rate

When: This rule should apply to every hour worked on the relevant day

Daily hours over

00:00

On: This rule should apply on Saturdays only

Week Days

Saturday

Then: Multiply the base rate by 1.2

Modify hourly Pay Rate

Multiply by | 1.20

2. Sunday Penalty Rate
Base rate multiplied by 1.6

Rule Name:

Sunday Penalty Rate

When: This rule should apply to every hour worked on the relevant day

Daily hours over

00:00

On: This rule should apply on Saturdays only

Week Days

Sunday

Then: Multiply the base rate by 1.6

Modify hourly Pay Rate

Multiply by | 1.60

3. Public Holiday Penalty Rate
Base rate multiplied by 2.2

Rule Name:

Public Holiday Penalty Rate

When: This rule should apply to every hour worked on the relevant day

Daily hours over

00:00

On: This rule should apply on Public Holidays only

Public Holidays

Then: Multiply the base rate by 2.20

Modify hourly Pay Rate

Multiply by | 2.20

4. Overnight Penalty Rate
Base rate plus $4.22


Rule Name:

Overnight Penalty Rate

When: This rule should apply from the hours of 12:00am - 7:00am

Time Worked Between

12:00 am - 7:00 am

On: This rule should apply on Monday-Friday

Week Days

Monday-Friday

Then: Add $4.22 to hourly Pay Rate

Modify hourly Pay Rate

Add | 4.22

Step 3: Order the Rules

Arrange the rules in the order in which they should apply. The order you set is important for ensuring the right rates are applied to any time worked, as any given hour of work can only have one overtime rule applied. In this example, the correct order is:

  1. Public Holiday Rate

  2. Sunday Penalty Rate

  3. Saturday Penalty Rate

  4. Overnight Penalty Rate

Once you have added the four rules and put them in the correct order, save the ruleset to lock it in!

Step 4: Create a Pay Grade

Overtime Rulesets can be linked to an employee via a Pay Grade. Pay Grades set the base rate for a group of employees and ensure they all have the extra rules applied. In this example, we will create a Pay Grade for a Level 1 Casual employee. We will add a 25% casual loading to the base rate, and link it to the "Casual Intro - Level 1" Overtime Ruleset that we just set up.

In Droppah, head to Manage → Pay Grades, and click New Pay Grade.

Name the Pay Grade Casual Level 1

Set the base hourly rate. In this example, the casual base rate is $32.3/hour (after 25% Loading).

From the “Select Overtime Ruleset” Dropdown menu, select Casual Intro - Level 1

Click on + People to assign this Pay Grade to all employees it applies to, then lock it in by clicking add selected people.

Save the pay grade, and you are done! We have created a Pay Grade that will serve as your employees' base rate, and an Overtime Ruleset that contains four rules to apply higher rates on Weekends, Overnight Hours, and Public Holidays.

Now, when you create a shift or a timesheet that matches any of these rules, Droppah will alert you to the fact that a higher rate is being applied.

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