Nenad Trajkovski

Project Management and Microsoft

Project

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

Posted on January 26, 2012

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:

then:

Now I will setup working time in my Calendar:

I will add a brand new Task in my Project:

Now I will add John as Resource:

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:

Now I will choose the Cost Table:

and I will get:

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:

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 doesnt mean that MS PROJECT
2010 will charge 4 extra hours with overtime rate.

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

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

and I will get:

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:

and I will get:

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
Lets look at the Task Usage View:

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.

Thats 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 Varadin,
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)!
View all posts by Nenad Trajkovski

This entry was posted in MICROSOFT PROJECT, Microsoft PRoject 2010, MS PROJECT 2010, MS PROJECT 20101, PMI, PRoject Management and tagged Microsoft Project
2010, MS PROJECT 2010 - assigning Overtime Pay Rates, PMI, Project Management. Bookmark the permalink.

20 Responses to How to apply Overtime, and Double time rates in MS PROJECT 2010
paul przekowiak says:
February 9, 2014 at 5:51 pm

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 dont 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 dont 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, its 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
Reply

Nenad Trajkovski says:

February 11, 2014 at 1:54 pm

Can you send me an mpp file on nenadtrajk@gmail.com?

Reply

bharanikumar says:
August 13, 2013 at 12:29 pm

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

Nenad Trajkovski says:

August 26, 2013 at 11:06 am

I dont understand your question! COuld you be more specific?

Reply

Susan Raatz says:

August 26, 2013 at 3:30 pm

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
dont 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.
Reply

galadar says:
March 28, 2013 at 7:08 am

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 thats why I am asking here:
How to set up different pay rate units such as ($/m, $/m2, $/m3, $/ton and so) and thats 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
Reply

Suasn Raatz says:

December 18, 2012 at 4:50 pm

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!
Reply

Nenad Trajkovski says:

December 18, 2012 at 6:56 pm

I will write a post for this issue next week! Thank you for a great Idea
Reply

Igor says:
October 18, 2012 at 4:30 pm

Hello Nenad Trajkovski,

Its a great blog you have over here.
About overtime, I tried to apply 12 hours a day on Saturday and Sunday, its a 2 day work (driving car) and It allocates 24
hours on Saturday. Both days are dayoff (rest time), so its 24 hours overtime rate. Is there a way to allocate 12 hours a day?
Thanks
Reply

Nenad Trajkovski says:

October 19, 2012 at 12:28 pm

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?
Reply

Igor says:
October 19, 2012 at 3:52 pm

Yes, thats right. Saturday and Sunday are days off, so if the I work that days its overtime. I cant 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:

October 20, 2012 at 8:46 am

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

Anna says:
July 10, 2012 at 2:15 pm

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
Reply

Nenad Trajkovski says:

July 11, 2012 at 8:05 am

YOu can apply only one standard rate and one overtime rate per day!
Reply

Nenad Trajkovski says:

July 11, 2012 at 1:34 pm

But yoiu can apply differnt tables (pax / costs) per task, if that can help you!
Reply

Anna says:
July 11, 2012 at 1:47 pm

Thanks very much Nenad. I appreciate your help. Anna.

hennry says:
June 22, 2012 at 8:51 am

Hai Mr. Nenad Trajkovski; Im 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 ? thanks in advance, best
regards,

hennry
Reply

Nenad Trajkovski says:

June 22, 2012 at 8:53 am

Can you send me mpp file?

Reply

Gordon says:
February 17, 2012 at 9:11 am

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
Reply

Nenad Trajkovski says:

February 17, 2012 at 11:52 am

Can you send me your mpp file? It works fine here

Reply

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