Souq Junction
🇸🇦 السعودية

Saudi Labor Law Overtime Pay Calculator

Labor & Careers Verified daily benchmark data
⏱️ Saudi Labor Law Overtime Calculator
Contractual basic salary used for labor office rate
Housing, transport or living allowances
Standard is 8 hours (or 6 hours during Ramadan)
Standard Saudi labor office divider is 30 days
Paid at 150% (hourly rate plus 50% premium)
Rest day hours paid at 150% statutory rate
Total Overtime Pay Due
SAR 750.00
Standard Regular Hourly Rate: SAR 25.00 / hour
Article 107 Overtime Hourly Rate (1.5x): SAR 37.50 / hour
Total Overtime Hours Completed: 20.0 Hours
Total Monthly Gross Takeaway: SAR 8,250.00

About Saudi Labor Law Overtime Calculator

Overtime compensation for private sector employees in Saudi Arabia is strictly governed by Article 107 of Royal Decree No. M/51. Standard working hours cannot exceed eight hours per day or forty-eight hours per week under Article 98, with statutory reductions to six hours per day or thirty-six hours per week for Muslim workers during Ramadan.

Any work performed in excess of standard daily or weekly thresholds qualifies as statutory overtime. Article 107 mandates that overtime hours must be compensated at the employee's regular hourly wage plus a mandatory fifty percent premium (150% of regular hourly pay). Furthermore, any hours worked on designated weekly rest days or official public holidays are treated entirely as overtime. This calculator determines your hourly base rate and totals your gross overtime payout.

How It Works & Key Standards

  • Hourly Wage Formula: Monthly Basic Salary divided by (Working Days per Month * Working Hours per Day).
  • Overtime Rate: Standard Hourly Wage multiplied by 1.5 (150% pay rate per Article 107).
  • Total Overtime Earnings: Overtime Hourly Rate multiplied by total overtime hours completed.
  • Monthly Gross Takeaway: Sum of Basic Salary, fixed monthly allowances, and total overtime compensation.

Frequently Asked Questions

How is the hourly rate determined under Saudi Labor Law?

The Ministry of Human Resources standard formula divides your monthly basic salary by 30 days, then divides by standard daily hours (typically 8), which equates to 240 hours per month.

Can an employer pay standard time instead of 1.5x for overtime?

No. Article 107 explicitly mandates that overtime must be paid at the regular hourly wage plus 50%. Offering compensatory time off or regular pay without the 50% premium violates Saudi labor regulations.

Are housing and transportation allowances included in overtime calculations?

Under standard labor office practice, overtime derives from the basic salary. However, if an employment contract or company internal bylaws state that total wage is used, allowances must be included.

What is the legal limit on annual overtime hours in Saudi Arabia?

Saudi labor regulations stipulate that overtime hours should generally not exceed 720 hours per calendar year per worker, unless special ministerial approval is obtained.