Practical Guide for Manual Overtime Calculation in Garment Workshops
Carlos Mendoza
Senior Accountant at Ecnom
For many Mypes in Gamarra, manual payroll calculation remains the foundation of their accounting management. This guide details the key steps to correctly calculate payroll components in physical books or Excel.
Materials Needed for Calculation
Attendance Record
Physical control book or Excel template with daily clock-ins and clock-outs for each worker.
Rates and Schedules
Document with the agreed daily wage, regular schedule, and legal percentage for overtime.
Calculator and Formulas
Basic tool and knowledge of the formulas for bonuses, CTS, and deductions.
Step-by-Step Process
- Data Collection: Consolidate monthly attendances, tardiness, and absences from the control book.
- Ordinary Hours Calculation: Multiply effective worked days by the established daily wage.
- Overtime Calculation: Identify hours exceeding the legal schedule and apply the 25% or 35% increase as applicable.
- Legal Additions: Calculate the proportional amount of bonuses (if applicable for the period) and the CTS deposit.
- Final Settlement: Add earnings, subtract legal deductions (AFP, ESSALUD) and obtain the net pay.
💡 Practical Tip from Ecnom
Maintain an Excel template with preconfigured formulas for recurring calculations. This reduces errors and saves valuable time you can dedicate to managing your workshop.
This manual method, although demanding, offers total control and a deep understanding of payroll for the business owner. At Ecnom we support garment workshops in Gamarra so this process is accurate and compliant with all current labor regulations.