Guide To Calculate Overtime As Per Saudi Labor Law

According to Saudi Labor Law Article (107), in the kingdom of Saudi Arabia overtime is paid at 150 percent of the hourly wage. The supplement for overtime is to be paid by the employer at 50 percent of his basic wage. Hours worked in excess of this in the film operated on the basis of the working week as a criterion shall be regarded as overtime. All hours worked shall be considered overtime if they are worked on holidays and Eid’s.

Calculate Overtime As Per Saudi Labor Law

Here is a simple calculation of overtime working in the Kingdom of Saudi Arabia. If a basic worker’s salary is SAR 3000 and he has worked 50 hours of overtime in a month, the overtime wage is calculated as follows:

Per Day Wages: 3000/30 = 100
Daily Working Hours: 8 Hours
Wages Per Hours: 12.5
Overtime Per Hour: 12.5 * 1.5 = 18.75
Total Overtime: 18.75 * 50 = 937.50

Working Hours As Per Saudi Labor Law

According to Saudi Labor Law Article (98), The daily working hours of worker may not work more than 8 hours per day if the employer uses the daily work basis, or more than 48 hours per week if he uses the weekly basis.

Working Hours During Ramadan

Working hours during Ramadan are reduced to 6 hours per day or 36 hours per week for Muslim workers.

Maximum Overtime Hours

The maximum number of overtime hours during a year is 720 hours and can be increased with the employee’s consent.

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