Saturday, March 8, 2025
This is how overtime hours are calculated for Employees in Saudi Arabia
The Ministry of Human Resources and Social Development in Saudi Arabia has released new guidelines for private sector workers' overtime pay, including how to account for time worked on special occasions, holidays, and in the event of an emergency. Trending: New amendments of Saudi Labor law
This decision was made to ensure that the worker may collect his right, as some businesses do not pay the proper rate for these hours. The appropriate authorities have made their rulings.
Overtime calculation in Saudi Arabia:
Companies and businesses in Saudi Arabia generally implement a 48-hour workweek cap, which equates to no more than 8 hours of labor every day. If the employee exceeds these hours, they are eligible for overtime compensation.
Every hour worked beyond the normal workweek is subject to a 50% financial increase, as mandated by the Ministry. For example, if a worker earns 20 Saudi Riyals per hour, they must be paid an additional 30 Saudi Riyals for each extra hour worked.
Overtime hours are the ones that workers put in on holidays and other special events. The employer must pay overtime at 150% of the base wage. If an employee makes 20 Saudi Riyals per regular hour, the overtime hour should be paid at 50 Saudi Riyals. Most Viewed: Updated regulations for domestic workers
Penalties for non-payment of Overtime:
According to the Ministry, overtime should not exceed 720 hours per year, as it reviewed all information regarding employees' overtime at their respective institutions. An employee's written authorization is required if they intend to work overtime beyond this limit.
The government also requires companies to compensate employees for these extra hours worked. In the event that the employer does not adhere to these requirements, they will be subject to penalties such as
* If the employer does not pay their employees wages when they are due, they will be penalized.
* This establishment will have its services suspended by the ministry if the same violation occurs again. There will be no reopening of the business until all accounts are paid in full. Read: Saudization of 269 professions
* This institution views the temporary ban on hiring new staff as a disciplinary measure against them.
* The government agency also mandated that businesses keep records of their employees' overtime hours worked so that they may be accessible when necessary.
* The authority has also stressed that workers must be given advance notice of any required overtime unless there is an emergency.
* The employee's consent is required before any overtime hours are exceeded. See Also: Companies with 50 or more employees must disclose training data
What is the average number of working hours used in the private sector?
Every business or organization must adhere to a strict 8-hour workday policy. The employee's approval is necessary in the event that the company wants to have them work more hours. Documentation of this agreement is required.
How are overtime hours calculated?
The ministry brought attention to the calculation of employees' overtime hours. For example, an employee who earns an hourly wage of 20 Saudi Riyals has an overtime rate of 50 Saudi Riyals per hour. Join Saudi Expatriates channel on WhatsApp
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| This is how overtime hours are calculated for Employees in Saudi Arabia |
