Posted by : Aahil Shaik Monday, September 7, 2015

Overtime as per Saudi Labor Law

1. Employer shall pay the employee or workman overtime hours equal to hourly rate plus 50% of his basic pay.

2. If the establishment or company is operating on the basis of weekly working hours, then additional hours to 48 hours is treated as overtime.

3. Official holidays and Eid's working hours shall be considered in overtime hours.

Overtime Exceptions :

1. Overtime hours is an exception to the employees or persons who is on high ranking positions of management or who have authority over workers or employees.

2. Guards and Janitors, excluding civil security guards.

3. Supplement works or preparatory which must be completed before commencement of work or after commencement of work.

4. Work that is intermittent by necessity.

You can also refer Article (107) and Article (108) under Saudi Labor Law English.

For working hours in Saudi Labor Law, Refer this article "Working Hours under Labour Law in KSA". For vacations and leaves policy read this article "Vacations and Leaves under Saudi Labor Law".
Overtime Calculation :

Overtime rate per hour = Hourly wage x 1.5

Hourly Wage = Daily Wage / 8

Daily Wage = Monthly Basic Salary / 30

Annual Basic Salary = Monthly Basic Salary x 12

Example for Overtime Calculation :

If Monthly Basic Salary is 3000

Daily Wage = 3000 / 30 = 100 SR

Hourly Wage = 100 / 8 = 12.50 SR

Overtime Labour Law in KSA

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