Overtime in Saudi Arabia
In Saudi Arabia, “Overtime” pays 150 percent of the hourly wage. According to Saudi Labor Law Article (107);
-The employer shall pay the worker for overtime working hours an additional amount equal to the hourly wage plus 50% of his basic wage.
-If the firm is operated on the basis of weekly working hours, the hours in excess of the hours taken as the criterion shall be deemed overtime hours.
-All working hours performed during holidays and Eid’s shall be deemed overtime hours
Calculate Overtime as per Saudi Labor Law
Here is a simple calculation of overtime in Saudi Arabia. If a worker’s basic salary is SR 3000 and he has worked 50 extra hours in a month, overtime wages will be as follows:
- Per day Wages: 3000/30= 100
- Daily working hours: 8 hours
- Wages per hour: 12.5
- Overtime per hour: 12.5 x 1.5= 18.75
- Total Overtime: 18.75 x 50 = 937.50
Working Hours as per Saudi Labor Law
According to Saudi Arabia labor law Article (98) a worker may not actually work for 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 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
The maximum number of overtime hours during the year is 720 hours, and they may be increased with the approval of the worker.