A time wage type is a renumeration specification for bonuses (overtime, nighttime bonus) as well as for employees earning hourly wages who are paid by the hour. These primary wage types are selected in either time evaluation or when processing time data in payroll accounting. They are used in payroll accounting to determine gross pay.
Example:
An employee works three hours of overtime. The R/3 System selects the wage type overtime for the employee using time wage type selection.