Overtime calculation in Saudi Arabia is an important responsibility for employers, payroll teams, and HR managers. At the same time, employees should also understand how their extra working hours are paid. Knowing the correct overtime formula ensures compliance with Saudi Labor Law and builds trust between companies and workers.
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Standard Working Hours in Saudi Arabia
According to Article 98 of the Saudi Labor Law:
- Standard working hours are 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.
- Daily working hours include rest, prayer, and meal breaks, provided they do not exceed 30 minutes per break.
Who is Eligible for Overtime in KSA?
Most employees in Saudi Arabia are entitled to overtime pay. However, there are a few exceptions:
- Senior managerial or supervisory positions with decision-making authority.
- Certain workers such as guards or janitors under specific labor contracts.
- Roles where flexible hours are already part of the compensation package.
If you are working in Saudi under an employment visa, your contract should clearly mention working hours and overtime eligibility.
Tip for Employers: Ensure all contracts are legally compliant to avoid disputes. Need assistance? Our team provides PRO services in Saudi Arabia to help you handle legal requirements smoothly.
Overtime Pay Formula in Saudi Arabia
The official overtime formula under Saudi labor law is:
Overtime Pay = Hourly Rate × 1.5 × Overtime Hours
Where:
- Hourly Rate = Monthly Salary ÷ 30 ÷ 8
- 1.5 = Overtime multiplier (150% of the normal hourly wage)
Employers using payroll outsourcing services can automate this formula to ensure accuracy and compliance.
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Overtime on Weekends and Public Holidays
If employees work on weekends or public holidays, the same 1.5x multiplier applies. Employers must also provide a substitute rest day if the employee’s weekly day off is not respected.
Step-by-Step Overtime Calculation Example
Example 1: Monthly Salary Employee
- Monthly Salary: SAR 6,000
- Hourly Rate = 6,000 ÷ 30 ÷ 8 = SAR 25/hour
- Overtime Hours Worked: 10 hours
- Overtime Pay = 25 × 1.5 × 10 = SAR 375
Example 2: Hourly Wage Employee
- Hourly Rate: SAR 20
- Overtime Hours Worked: 15 hours
- Overtime Pay = 20 × 1.5 × 15 = SAR 450
Maximum Overtime Limits
- Total working hours (including overtime) must not exceed 11 hours per day.
- Weekly overtime should not exceed legal limits set by the Ministry of Human Resources and Social Development (MHRSD).
- Employers should obtain employee consent for overtime beyond standard shifts.
Compliance & Best Practices for Employers
- Maintain accurate attendance and timesheet records.
- Use HR outsourcing services in UAE to streamline compliance.
- Clearly state overtime policies in employee contracts.
- Pay overtime in the same payroll cycle to avoid disputes.
Struggling to manage compliance? Our experts can guide you with payroll, HR, and labor law advisory. Book a free consultation today.
Employee Rights in Overtime
Employees can raise disputes through the Saudi Ministry of HR & Social Development (MHRSD) if overtime pay is not provided.
Employers may face fines and penalties for failing to comply with labor laws.
Overtime pay is generally included in wage calculations for GOSI (social insurance) contributions.
For assistance in filing disputes or document processing, you can rely on PRO services in Saudi Arabia.
Saudi Arabia vs Other GCC Countries
| Country | Standard Hours | Overtime Rate | Ramadan Hours |
|---|---|---|---|
| Saudi Arabia | 8/day, 48/week | 1.5× hourly rate | 6/day, 36/week |
| UAE | 8/day, 48/week | 1.25–1.5× depending on time | 6/day |
| Qatar | 8/day, 48/week | 1.25–1.5× | 6/day |
| Oman | 9/day, 45/week | 1.25–1.5× | 6/day |
Frequently Asked Questions (FAQs)
Q1. What is the legal overtime rate in Saudi Arabia?
The overtime rate is 1.5 times the hourly wage for each extra hour worked beyond standard hours.
Q2. Do employees get overtime during Ramadan?
Yes. If employees work beyond the reduced Ramadan hours (6 hours/day), they must be compensated at the overtime rate.
Q3. Is overtime paid on weekends and public holidays?
Yes. Work performed on weekends or holidays must be compensated at the 150% overtime rate.
Q4. Are managers entitled to overtime in KSA?
Not always. Senior managers and supervisory staff with authority over others may be exempt from overtime under Article 108.
Q5. What is the maximum overtime allowed per day?
Working hours including overtime cannot exceed 11 hours in a single day.
Q6. How do you calculate fractional overtime (e.g., 30 minutes)?
Convert minutes into a decimal (30 minutes = 0.5 hour) and apply the standard formula.
Q7. Can employees refuse overtime?
Employees may refuse overtime beyond legal limits unless their contract explicitly requires flexibility.
Q8. How to claim unpaid overtime in Saudi Arabia?
Employees can file a complaint with the Labor Office (MHRSD). Employers may be fined or required to pay back wages.
Conclusion
Understanding overtime calculation in Saudi Arabia is essential for both employers and employees. By following the official formula, respecting maximum limits, and keeping accurate records, businesses can remain compliant with Saudi labor laws while ensuring employees are fairly compensated for their extra efforts.
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