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. Read: 720 hours maximum annual overtime: HRSD
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. Related: Working Hours in Saudi Arabia
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.