In Saudi Arabia, overtime is calculated based on the employee’s regular hourly rate. According to Article 107 of the labor law, the employer must pay the worker for overtime hours an amount equal to the hourly wage plus 50% of the basic wage. This means that overtime pay is 1.5 times the regular hourly rate for each extra hour worked.
Steps to Calculate Overtime:
- Determine the Basic Wage: Identify your basic wage, which is your regular hourly rate of pay.
- Calculate Overtime Rate: Multiply your basic wage by 1.5 to find your overtime rate per hour.
- Track Overtime Hours: Keep a record of the number of hours you work beyond your standard work hours.
- Compute Overtime Pay: Multiply the number of overtime hours worked by the overtime rate to calculate your total overtime pay.
Example Calculation:
- Basic Wage: SAR 20 per hour
- Overtime Rate: SAR 20 * 1.5 = SAR 30 per hour
- Overtime Hours: 10 hours
- Overtime Pay: SAR 30 * 10 = SAR 300
How to Calculate Regular Hourly Wage
To calculate your regular hourly wage, you will need to divide your total salary by the number of hours you work each month. For example, if your salary is SAR 4,000 per month, and you work a total of 48 hours per week, your regular hourly wage would be calculated as follows:
(4,000 / 4 weeks per month) / 48 hours per week = 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.
