Overtime Calculation in KSA
In Saudi Arabia, overtime payments are calculated based on the number of hours worked in excess of normal working hours. The calculation is made by multiplying the number of hours worked by the hourly wage. The sum is then multiplied by 1.5 to get the overtime payments. This blog will guide you through the calculation of overtime work in Saudi Arabia and the basic rules and regulations regarding overtime pay.
The Basic Rules and Regulations for Overtime in Saudi Arabia
Article 107 of the Saudi Arabian Labor Law states the following:
- The employer must pay the worker an amount of overtime equal to the hourly wage plus 50% of the base wage.
- If the company operates on a weekly working hours basis, all hours in excess of the normal working hour are considered overtime.
- All working hours during holidays and holidays will be considered overtime.
How to Calculate Overtime Payments
Below is a simple calculation of how much overtime an employee in Saudi Arabia will receive if they work 50 hours more than they are paid. If the employee’s basic salary is 3,000 riyals and he works an additional 50 hours, the total amount of overtime salary will be as follows:
- Daily salary: 3000 SAR / 30 = 100 SAR (monthly salary / number of days in the month)
- Daily working hours: 8 hours
- Hourly wage: 12.5 SAR (daily wage / daily working hours)
- Overtime wage: 12.5 x 1.5 = 18.75 (hourly wage x 1.5)
- Total overtime: 18.75 x 50 = 937.50 (overtime pay x total overtime)
Working Hours as per Saudi Labor Law
According to Saudi Arabian Labor Law, a worker cannot be required to work more than eight hours a day if the employer uses a day work basis, or more than 48 hours a week if he uses a work basis. weekly job.
Working Hours during Ramadan
During Ramadan, working hours are reduced to six hours per day and 36 hours per week for Muslim workers.
Maximum Overtime Hours in a Year
The maximum number of overtime hours per year is 720 hours, but can be increased with the consent of the worker.