How to Calculate Overtime in Saudi Arabia

Overtime refers to the extra hours an employee works beyond their normal work schedule. In this article, we’ll show you how to easily calculate overtime pay in Saudi Arabia. We’ll cover the legal rules, the overtime pay rate, and give you a step-by-step guide to help you figure out the correct overtime compensation. Knowing how to properly calculate overtime is important for both employers and employees to ensure fair and legal compensation practices.

Overtime Rate in Saudi Arabia

In Saudi Arabia, when you work extra hours beyond your normal schedule, your overtime pay is calculated based on your regular hourly wage. According to the labor law, your employer must pay you your hourly wage plus an extra 50% of your basic salary for each overtime hour. This means you will receive 1.5 times your usual hourly rate for every additional hour worked.

Read: Maximum Number of Permissible Overtime Hours in a Year

Steps to Calculate Overtime:

1. Know Your Basic Wage: Find out your regular hourly pay rate, which is your basic wage.
2. Overtime Rate: Multiply your basic wage by 1.5 to get your overtime rate per hour.
3. Track Extra Hours: Record the hours you work beyond your usual schedule as overtime hours.
4. Calculate Overtime Pay: Multiply the total overtime hours by the overtime rate to determine your overall overtime pay.

How to Calculate Regular Hourly Wage

To find your regular hourly wage, divide your monthly salary by the hours you work each month. For instance, if you earn SAR 4,000 monthly and work 48 hours weekly, your hourly wage is calculated like this: (4,000 / 4 weeks) / 48 hours = SAR 20.83 per hour.

It is important to note that this calculation assumes that you work the same number of hours each week. If your hours vary from week to week, you will need to use the average number of hours worked per week to calculate your hourly wage.

Overtime Pay Calculation

Here is a sample overtime pay calculation for easy understanding.

• Basic Wage: If your regular hourly wage is SAR 20.
• Overtime Rate: To calculate your overtime rate, you multiply your basic wage (SAR 20) by 1.5, which equals SAR 30 per hour for overtime work.
• Overtime Hours: Let’s say you worked 10 extra hours beyond your standard work hours.
• Overtime Pay: To find your total overtime pay, you multiply the number of overtime hours (10) by the overtime rate per hour (SAR 30), which gives you a total overtime pay of SAR 300.

Understanding how to calculate overtime pay in Saudi Arabia is essential for both employers and employees to ensure fair compensation practices. By following the steps outlined in this article, you can accurately determine and manage overtime payments in compliance with the country’s labor laws.