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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 their families more effectively. Today we describe some of the rules which were applied on overtime and its calculation. All the major points with an example of overtime calculation is given below. These rule are updated to 2017 according to current OT calculation stated in Saudi Labour laws.

 

Overtime(OT)Rules:

1. 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 an 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. KAFEEL(employer) and other high ranking officials and management persons will be excepted from overtime hours.

2. Security guards and janitors except for 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.

The 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 the 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 for 2 hours overtime than: 2 x 16.62 x 1.5 = 49.86 SR

 

Find More at Filed Under: Labor Law, Salary Laws

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Reader Interactions

Comments

  1. Pedro castillejo jr

    February 6, 2017 at 6:13 am

    how we can complain if the company is not paying full rendered hours of overtime, they just paying less than 50 percent? 3 consecutive months their doing the same, is it right?

    Reply
  2. Rafaqat Nomaan Choudhry

    May 9, 2017 at 12:17 pm

    Wrong Calculation, could you please explain how 2 x 16.62 x 1.5 = 24.93 SR.

    Reply

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