> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dishink.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Payroll Settings

> Overtime rules, monthly proration, working days per month, and negative net pay policy.

Payroll Settings hold the global rules DishInk applies when generating pay records. Configure them once during onboarding and revisit only when policy changes.

## Where to find them

**Staff → Payroll → Settings**.

## Setting reference

<AccordionGroup>
  <Accordion title="Overtime threshold (hours per day)">
    Hours worked in a single day beyond this threshold are paid at the OT rate. Default **8**. Applies to hourly wage structures unless the wage record has its own override.
  </Accordion>

  <Accordion title="Overtime multiplier">
    Multiplier applied to the base hourly rate for OT hours. Common values: **1.5×** and **2×**. Default **1.5×**.
  </Accordion>

  <Accordion title="Prorate monthly wages by days">
    When **on**, monthly salaries are prorated: `daily_rate = monthly_salary / working_days_per_month`, then multiplied by days worked in the period. When **off**, monthly staff receive the full salary regardless of days worked.
  </Accordion>

  <Accordion title="Working days per month">
    Divisor used for monthly proration. Default **26** (six-day working week). Set to 22 for a five-day week or 30 for calendar-day proration.
  </Accordion>

  <Accordion title="Allow negative net pay">
    When **on**, deductions and advances can push net pay below zero — the balance rolls forward to the next period. When **off**, deductions cap at the gross so net pay is never negative (residual deductions defer).
  </Accordion>
</AccordionGroup>

<Frame caption="Payroll settings panel.">
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/dishink/images/staff/payroll-settings.png" alt="Payroll settings" />
</Frame>

## Recommended defaults for Zambian restaurants

<Checklist>
  * Overtime threshold: **8 hrs/day**
  * Overtime multiplier: **1.5×**
  * Prorate monthly wages: **On**
  * Working days per month: **26**
  * Allow negative net pay: **Off** (safer for cash flow and staff morale)
</Checklist>

## Tips and best practices

* Lock these settings after onboarding. Frequent changes create disputes.
* If you switch to a five-day working week, drop `working_days_per_month` to 22 in the same session you announce the change.
* Leave **Allow negative net pay** off unless your finance team explicitly needs rollover deductions.

## Common mistakes

* **Setting OT threshold too low.** Every long shift will trigger OT premium, inflating labour cost.
* **Changing proration mid-period.** Records already generated for the period will not recalculate automatically — revert to draft and regenerate.
* **Toggling negative net pay after paid records exist.** Historical records are unaffected; only future records use the new policy.

## Related pages

* [Wage Structures](/staff/payroll/wage-structures)
* [Generating Payroll](/staff/payroll/generating)
* [Pay Schedules](/staff/payroll/pay-schedules)
* [Deductions](/staff/payroll/deductions)