> ## Documentation Index > Fetch the complete documentation index at: https://usepike.com/docs/llms.txt > Use this file to discover all available pages before exploring further. # Working time and overtime > How Pike handles full-time, part-time, and hourly contracts: work schedules, norm hours, flex time, additional hours, overtime tiers, and time off in lieu. Every member's contract sets how many hours they are expected to work and on which days. Pike compares approved time against that norm for each pay period and sorts the difference into flex time, additional hours, or overtime. HR closes the period, and the result goes to payroll and into the member's cost. ## Employment types Set the employment type on the member's contract under **Cost profile**. It decides how hours turn into pay. | Type | Pay basis | What Pike calculates | | - | - | - | | **Salaried** | A fixed salary covers the norm hours. | Additional hours, overtime, flex time, and absence. Normal hours are covered by salary and not sent. | | **Hourly** | Paid for every approved hour. | Normal hours, overtime, and absence. | | **Contractor** | Paid on invoice or by a contractor platform. | Approved hours only. No overtime, balances, or absence pay. Hours go to the contractor platform if one is connected. | ## Work schedule The work schedule sets hours per weekday. **Capacity per week** is the sum of the schedule. | Example | Mon | Tue | Wed | Thu | Fri | Sat | Sun | Capacity per week | | - | - | - | - | - | - | - | - | - | | Full-time, 37 hours | 7.4 | 7.4 | 7.4 | 7.4 | 7.4 | 0 | 0 | 37 | | Part-time, four days | 7.5 | 7.5 | 7.5 | 7.5 | 0 | 0 | 0 | 30 | | Part-time, short days | 5 | 5 | 5 | 5 | 5 | 0 | 0 | 25 | | Weekend worker | 0 | 0 | 8 | 8 | 8 | 8 | 0 | 32 | A contract with only **capacity per week** and no schedule spreads the hours evenly over Monday to Friday. Saturday and Sunday are available in the schedule for people who work weekends. The schedule drives [capacity](https://usepike.com/docs/allocation/workspace-capacity.md), [time off deductions](https://usepike.com/docs/members/time-off.md), and the norm below. A new contract with a new effective date changes the schedule from that date only. ## Norm hours The norm is the hours a member is expected to work in a period: the scheduled hours on each day, minus public holidays from the member's holiday calendar. Time off that counts toward the norm fills it as if worked. By default that is vacation, sick leave, public holidays, time off in lieu, and extra holidays. Unpaid leave reduces the norm instead. Each time-off type has a **Counts toward norm** setting under **Log** → **Time-Off** → **Settings**. `Norm = scheduled hours in period − public holiday hours` `Worked = approved time + time off that counts toward the norm` ## Working time policies A working time policy sets how hours above or below the norm are handled. Create policies under **Workspace settings** → **Working time** and assign one to each contract. New workspaces have one default policy that every contract uses until you change it. | Setting | Options | Default | | - | - | - | | **Mode** | Overtime, Flex time, or None | Overtime | | **Norm period** | Week or pay period | Week | | **Full-time norm** | Hours per week a full-time member works | 37 | | **Daily threshold** | Hours per day after which time counts as overtime, or off | Off | | **Overtime 1** | First hours of overtime in the norm period, and supplement | 3 hours at 50% | | **Overtime 2** | Hours beyond Overtime 1, and supplement | 100% | | **Weekend and holiday work** | Counts as Overtime 2 from the first hour, or follows the tiers | Follows the tiers | | **Compensation** | Pay out, time off in lieu, or member chooses | Pay out | | **Flex limits** | Highest and lowest flex balance | +37 and −15 hours | **None** suits roles where salary covers all hours, such as managers and partners. Hours above the norm are recorded in reports but never become overtime or flex. ## How Pike sorts hours above the norm At the end of each norm period, Pike compares worked hours to the norm and sorts the difference in this order: 1. **Daily threshold.** With a daily threshold on, hours above it on any day count as overtime first. 2. **Additional hours (part-time).** For a part-time member, hours above their own norm and up to the full-time norm are additional hours. They pay at the normal hourly rate with no supplement. 3. **Overtime 1.** Hours above the full-time norm, up to the Overtime 1 limit, pay with the Overtime 1 supplement. 4. **Overtime 2.** Everything beyond Overtime 1 pays with the Overtime 2 supplement. Weekend and public holiday work follows the **Weekend and holiday work** setting. Only approved time counts, so unapproved entries never create overtime. ### Example: part-time member Sofia works 30 hours a week, Monday to Thursday. The full-time norm is 37 hours, and Overtime 1 is the first 3 hours at 50%. In one week she logs 42 approved hours. | Hours | Sorted as | Paid as | | - | - | - | | 30 | Norm | Salary | | 7 (30 to 37) | Additional hours | Normal hourly rate | | 3 (37 to 40) | Overtime 1 | Normal hourly rate plus 50% | | 2 (40 to 42) | Overtime 2 | Normal hourly rate plus 100% | A full-time colleague with the same 42 hours has no additional hours: 3 hours of Overtime 1 and 2 hours of Overtime 2. ### Normal hourly rate For salaried members, the normal hourly rate is salary per period divided by norm hours per period, from the contract in force. For hourly members, it is the contract rate. Supplements are a percentage of the normal hourly rate. ## Flex time In **Flex time** mode, hours above or below the norm go to the member's flex balance instead of becoming overtime. The balance carries over between periods. * When the balance passes the upper flex limit at period close, the hours above the limit become overtime and are sorted into the tiers as above. * When the balance passes the lower limit, the member and their manager get a notification. Pike never deducts pay for a negative flex balance. * Members take flex hours off by logging time off of the **Flex** type, which reduces the balance. The flex balance shows on the member's profile and in **Log** → **Time-Off** → **Overview**. ## Compensation: pay out or time off in lieu Each overtime hour is either paid out or credited as time off in lieu. | Compensation | Effect | | - | - | | **Pay out** | Overtime goes to payroll with its supplement. | | **Time off in lieu** | Overtime is credited to the time off in lieu balance, including the supplement. One hour of Overtime 1 at 50% credits 1.5 hours. | | **Member chooses** | The member picks pay out or time off in lieu for each period when they submit their time. HR can change the choice before close. | Additional hours for part-time members are always paid out, since they carry no supplement. ## Approval and period close Overtime comes from approved time only, so [time approval](https://usepike.com/docs/time/admin.md) is the check before both billing and pay. HR reviews the result for every member before the pay period closes. See [Pay periods and payroll](https://usepike.com/docs/members/payroll.md). ## Cost and margin Paid overtime supplements and additional hours add to the member's accrued cost in the period they are paid. Project margin and [actual hourly cost](https://usepike.com/docs/members/cost-profile.md) include them, so a project that runs on overtime shows the real cost, not the cost at normal rates. Time off in lieu adds no cost when earned. It reduces capacity when taken. ## Permissions Admins and HR create and assign working time policies and close pay periods. Managers approve time for their team. Members see their own norm, flex balance, overtime, and balances. ## Related * [Time off and vacation](https://usepike.com/docs/members/time-off.md): Balances, accrual, part-day leave, and public holidays. * [Pay periods and payroll](https://usepike.com/docs/members/payroll.md): Period close and pay lines sent to payroll. * [Cost profile](https://usepike.com/docs/members/cost-profile.md): Contracts, schedules, and hourly cost. * [Workspace capacity](https://usepike.com/docs/allocation/workspace-capacity.md): How schedules and time off set available hours. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.