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How to Calculate Overtime in Saudi Arabia

Overtime in Saudi Arabia

Overtime hours in Saudi Arabia are calculated according to a strict system. The amount of compensation is equal to 50% of the basic wage. The hours worked during the time period are calculated according to the actual working hours. This article will explain the rules and regulations that govern overtime in Saudi Arabia. This law was implemented to protect employees from abusive employers, so it’s important to understand what to expect and how to calculate it correctly.

What the Saudi Labor Law States About Overtime

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.

Also Read: How to Calculate End of Service Benefits in Saudi Arabia

Example of Overtime Hours Calculation in Saudi Arabia

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 labor 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.

Also Read: Working Hours in Saudi Arabia

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