Overtime Calculation in KSA
In Saudi Arabia, overtime payments are calculated based on the number of hours worked in excess of the normal work hours. The calculation is done by multiplying the number of hours worked in excess with the hourly wage. The total is then multiplied by 1.5 to get the overtime payment. This blog post will walk you through the overtime calculation in KSA and the basic rules and regulations related to overtime pay.
The Basic Rules and Regulations for Overtime in Saudi Arabia
Article 107 of the Saudi Labor Law states that:
- The employer must pay the worker an additional amount for overtime working hours equal to the hourly wage plus 50% of the basic wage.
- If the firm operates on the basis of weekly working hours, all hours in excess of the normal working hour shall be deemed overtime hours.
- All hours worked during holidays and Eid days will be considered overtime.
How to Calculate Overtime Payments
Here is a simple calculation of how much overtime pay an employee in Saudi Arabia would get if they worked 50 hours more than what they are paid for. If an employee’s basic salary is SR 3000 and they work 50 hours more, the total amount of overtime pay will be as follows:
- Daily wages: SR 3000/30= SR 100 (Monthly Salary/ Number of Days in a Month)
- Daily working hours: 8 hours
- Hourly wages: SR 12.5 (Daily wages / Daily working hours)
- Hourly overtime wages: 12.5 x 1.5= 18.75 (Hourly wages x 1.5)
- Total overtime: 18.75 x 50 = 937.50 (Hourly overtime wages x Total overtime hours)
Working Hours as per Saudi Labor Law
According to Saudi Arabia labour law, a worker may not be asked to work more than eight hours a day if the employer uses the daily work basis, or more than forty-eight hours a week if he uses the weekly work basis.
Working Hours during Ramadan
During the month of Ramadan, working hours are reduced to six hours a day and 36 hours a week for Muslim workers.
Maximum Overtime Hours in a Year
The maximum number of overtime hours in a year is 720, but they can be increased with approval from the worker.