How to Calculate Overtime Pay in Saudi Arabia – A Complete Guide

Can you imagine working extra hours and not getting fair compensation? This is a common concern for many employees in Saudi Arabia. Whether you work in a private company or a government entity, understanding how to calculate overtime pay in Saudi Arabia is essential to ensure you receive what you deserve.

Saudi labor laws are clear about overtime regulations, but many employees and even employers struggle to interpret them correctly. In this guide, we will break down everything you need to know about calculating overtime pay step by step, so you can be sure you are being paid fairly for your extra hours.

Understanding Overtime Pay in Saudi Arabia

Overtime pay in Saudi Arabia is governed by the Saudi Labor Law, which mandates that employees should be compensated for any extra work beyond their normal working hours. If an employee works beyond 8 hours per day or 48 hours per week, they are entitled to overtime pay.

The law also states that overtime wages should be calculated based on the employee’s basic salary along with other benefits, ensuring fair compensation.

Standard Working Hours as per Saudi Labor Law

Before diving into the calculation, it’s essential to understand the standard working hours set by the labor law:

• Regular working hours: 8 hours per day or 48 hours per week

• During Ramadan, working hours for Muslim employees are reduced to 6 hours per day or 36 hours per week

• Any work beyond these hours qualifies as overtime

How to Calculate Overtime Pay in Saudi Arabia?

The formula to calculate overtime pay in Saudi Arabia is straightforward and follows this structure:

Overtime Pay Formula:

Overtime Pay = (Basic Salary / 30 days / 8 hours) × 1.5 × Overtime Hours

Step-by-Step Example Calculation

Let’s assume an employee has:

• A basic salary of SAR 6,000 per month

• Worked 10 extra hours in a month

Step 1: Calculate Hourly Wage

Hourly Wage = 6,000 / 30 / 8 = SAR 25 per hour

Step 2: Apply the Overtime Multiplier (1.5x)

Overtime Wage = 25 × 1.5 = SAR 37.5 per hour

Step 3: Multiply by Overtime Hours

Total Overtime Pay = 37.5 × 10 = SAR 375

So, the employee will receive SAR 375 as overtime pay for those extra 10 hours.

Overtime Pay for Weekend and Holiday Work

If an employee works on weekends or public holidays, the overtime rate increases. According to Saudi Labor Law:

• Overtime on holidays/weekends = Hourly wage × 2 × Overtime Hours

For example, if an employee works 5 hours on a public holiday with an hourly rate of SAR 25, the calculation would be: 25 × 2 × 5 = SAR 250

Thus, SAR 250 will be paid for overtime on that public holiday.

Key Rules for Overtime Eligibility in Saudi Arabia

• Employees must have a valid employment contract to claim overtime.

• Certain employees in managerial roles may not be eligible for overtime.

• Overtime hours should be approved by the employer.

• Employees working night shifts (10 PM - 6 AM) may be entitled to additional pay.

• Employers must include overtime payments in monthly salaries as per labor law.

How to Ensure You Get Paid for Overtime?

1. Keep Track of Your Extra Hours

Use a timesheet or a digital app to record overtime hours.

2. Understand Your Employment Contract

Check if your contract includes overtime policies and ensure they align with Saudi labor law.

3. Communicate with HR or Management

If you believe you haven’t been paid correctly, discuss it with your HR department.

4. Report Violations if Necessary

If your employer refuses to pay overtime, you can file a complaint with the Ministry of Human Resources and Social Development (HRSD).

Frequently Asked Questions (FAQs)

1. Who is eligible for overtime pay in Saudi Arabia?

All employees working beyond 8 hours per day or 48 hours per week except those in managerial and supervisory positions.

2. How do I calculate my hourly wage?

Divide your basic salary by 30 days and then divide by 8 hours.

3. Is overtime pay mandatory in Saudi Arabia?

Yes, employers must legally compensate employees for any approved overtime.

4. How can I report an employer who refuses to pay overtime?

You can file a complaint with the Ministry of Human Resources and Social Development (HRSD).

Final Thoughts

Knowing how to calculate overtime pay in Saudi Arabia is crucial for ensuring that employees receive fair compensation for their extra efforts. By understanding the labor laws, overtime formula, and calculation methods, you can safeguard your rights and avoid payment disputes.

If you believe you are not receiving the correct overtime wages, always verify with your employer and take appropriate action if needed. A well-informed employee is always in a stronger position to demand fair pay.