Overtime Hours Calculation Saudi Labor Law KSA


All the employees who on the job in the Kingdom of Saudi Arabia to earn extra money in their monthly income by doing overtime hours so that they can support their families member more efficiently.
Calculation of Overtime hours KSA
Calculation of Overtime hours KSA

Let us describe some of the rules which were implemented on overtime and its calculation. All the important points with the example of the overtime calculation are given below. These rules are updated to 2017 as per the current Overtime calculation mentioned in Saudi Labor Laws.

Rules of Overtime

  1. One of the Rules is the Sponsor shall pay the worker or employee overtime hrs equal to hourly cost 50% of his basic salary.
  2. IF the establishment or employer is operating on the weekly basis of the working hrs, then extra hrs to 48 hrs is treated as overtime.
  3. The Official Eid and holiday's working hrs shall be considered OT hrs.

Overtime Exceptions

  1. Those persons or Employees are exceptions to the overtime which is positions on the high ranking job of management or have authority over the employee, Labor or worker.
  2. Janitors and Guards, except civil Security guards from the Overtime.
  3. The Preparatory or Supplement job which must be completed after the commencement of work or before the beginning of work.
  4. A job that is not continuously or intermittent by necessity.

Calculation of Overtime Hours

Overtime rate per hr= hr wage x 1.5
Hr Wage=Daily wage/8
Daily fee = Monthly Basic Salary x 12

For Example

someone receiving monthly basic pay 1000 SAR and work for 100 extra hr in a month then the calculation of overtime is the following:
  1. IF Monthly Basic pay is 1000 SAR (Must consider the basic and not total package)
  2. Extract per day salary income: 1000 basic salary / 30 days = 33.33 SAR
  3. Per hour salary income: 33.33 / 8 = 4.16 SAR
  4. The Overtime hours will multiply with 1.5 
  5. So 100 hours income will be = 100 hours x 1.5 x 4.15 = 622.5 SAR (not to consider 4.15 x 100).

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HowGear: Overtime Hours Calculation Saudi Labor Law KSA
Overtime Hours Calculation Saudi Labor Law KSA
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