Need guidance on how to configure overtime banking in IFS. The requirement is that employees can choose to bank their overtime hours instead of being paid at the 1.5 rate. They should be able to save up to 40 hours per year. They may then take time off in lieu and also build the bank back up again within the same year. Employees should have the flexibility to either:
Convert the banked overtime hours into Lieu Leave, or
Receive a payout on a selected date.
If anyone knows how to set this up in IFS or has experience with a similar configuration, please advise.
Thank you!
Best answer by Savinda.Tennakoon
Core Setup Steps
Enable Overtime Clocking Options
Employees can choose between:
Cash Overtime (paid at 1.5 rate)
Compensatory Overtime (bank hours for time off)
This is done via Clock OUT with Overtime activity:
“You can report cash overtime if you want to be paid for your overtime hours. Instead, if you want to use your overtime hours to compensate for absence during work hours, you can report overtime comp. Note that employees need to be connected to a Compensatory type balance in order to use compensatory overtime.” Read full guide here[docs.ifs.com]
Create a Compensatory Balance
Define a balance type for overtime banking (e.g., “Overtime Bank”).
Set maximum allowed hours (e.g., 40 hours per year).
Employees linked to this balance can accrue and withdraw hours.
Translate Wage Codes for Time in Lieu
Use the Wage Code Translation Table to convert overtime pay codes into compensatory leave codes when employees choose time in lieu:
“When an employee requests time in lieu, the overtime-clocking is supplemented with this request, and the calculation exchanges the cash wage codes for the compensation wage codes entered in the translation table.” See documentation here[docs.ifs.com]
Allow Payout Option
Employees can request payout of banked hours by:
Using a specific wage code for payout
Or via Balance Withdrawal functionality in Time & Attendance
This can be scheduled for a selected date.
Your Requirements Mapped
Bank up to 40 hours/year → Set max limit in balance definition.
Convert to Lieu Leave → Use compensatory overtime + wage code translation.
Receive payout on selected date → Configure payout wage code or withdrawal process.
Rebuild bank within same year → Ensure balance allows accrual after withdrawa
This is done via Clock OUT with Overtime activity:
“You can report cash overtime if you want to be paid for your overtime hours. Instead, if you want to use your overtime hours to compensate for absence during work hours, you can report overtime comp. Note that employees need to be connected to a Compensatory type balance in order to use compensatory overtime.” Read full guide here[docs.ifs.com]
Create a Compensatory Balance
Define a balance type for overtime banking (e.g., “Overtime Bank”).
Set maximum allowed hours (e.g., 40 hours per year).
Employees linked to this balance can accrue and withdraw hours.
Translate Wage Codes for Time in Lieu
Use the Wage Code Translation Table to convert overtime pay codes into compensatory leave codes when employees choose time in lieu:
“When an employee requests time in lieu, the overtime-clocking is supplemented with this request, and the calculation exchanges the cash wage codes for the compensation wage codes entered in the translation table.” See documentation here[docs.ifs.com]
Allow Payout Option
Employees can request payout of banked hours by:
Using a specific wage code for payout
Or via Balance Withdrawal functionality in Time & Attendance
This can be scheduled for a selected date.
Your Requirements Mapped
Bank up to 40 hours/year → Set max limit in balance definition.
Convert to Lieu Leave → Use compensatory overtime + wage code translation.
Receive payout on selected date → Configure payout wage code or withdrawal process.
Rebuild bank within same year → Ensure balance allows accrual after withdrawa
