Overtime Calculation and Labour Law in Saudi Arabia

Every labour who works in Kingdom of Saudi Arabia wants to add extra income in their salaries by doing overtime so that they can support there families more effectively. Today we describe some of the rules which were applied on overtime and its calculation. All the major points with example of overtime calculation is given below.

saudi arabian labour law1. There are Eight working Hours allowed in a day. If you want to work more or employer asking you to do more work than  these extra hours of work is considered as Overtime.

2. Employer shall pays his workmen overtime equal to hourly rate plus adding 50% of his basic pay.

3. If employer or company is rule set on weekly working hours than extra working hours after 48 hours will be considered as overtime hours.

4. National Holidays and Eid working hours shall be considered as overtime. So working on these days means you must have to be given with overtime pay.

Overtime Exception:

1. Khalifa(employer) and other high ranking officials and management person will be excepted from overtime hours.

2. Security guards and janitors except civil security guards.

3. Those works such as preparatory or supplement works are not considered as overtime hours.

4. Work that is intermittent by necessity.

Calculation for Overtime Hours in KSA:

Overtime  rate/hour = Hourly wage x 1.5

Hourly Wage = Daily Wage / 8

Daily Wage = Monthly Basic Salary / 30

Annual Salary = Monthly Basic Salary x 12

For working hours in Saudi Labor Law, Refer this article “Working Hours under Labour Law in KSA”.

Example for calculation of Overtime:

If Monthly salary is 4000 Saudi Riyal
Daily wage 4000/30 = 133 SR
Hourly Wage = 16.62 SR
Or if you worked 2 hours overtime than 16.62 x 1.5 = 24.93 SR


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