Do you have some extra time, believing that calculating overtime in Saudi Arabia is unnecessary in your company? Overtime and Working Hours in Saudi Arabia You may have heard from others that overtime is forbidden in the Kingdom. This is incorrect as employers in the Kingdom must pay for overtime their employees work.
Overtime shall be paid for hours worked above 48 per week with a compensation rate of 100% of regular pay. This article provides the best method of Calculating overtime in Saudi Arabia.
Saudi Arabia is one of the wealthiest countries in the Arab world and has a massive population, making its economy grow at a very high rate. The labor market of Saudi Arabia is also one of the most active and successful economies in the Gulf region. It hosts millions of expats from all across the world and provides them with good career opportunities.
Overtime is one of the privileges of an employee working in Saudi Arabia. This compensates for the long hours he puts up working for the company. Overtime is also a way to attract more qualified and skilled workers, as it is usually given as monetary compensation rather than an extended break from work.
Overtime is very common in Saudi Arabia, and sometimes it becomes necessary. But there are some rules that you should be aware of. Saudi Arabian labor law stipulates that overtime employees receive 150% of their usual wage for the first two hours of overtime and 200% for any additional hours worked.
This payment is irrespective of seniority or job title. The critical thing to remember is that overtime can only begin after eight hours of work have been completed. Furthermore, no more than three overtime hours may be worked in one day.
Overtime And Working Hour In Saudi Arabia
Here we provide you with a step-by-step on Overtime Calculation in KSA.
1. Calculate your hourly rate of pay. This is your regular pay rate, which you can find on your pay stub.
2. Multiply your hourly rate of pay by 0.5. This is the overtime rate for an hour of work in Saudi Arabia.
3. Multiply the overtime rate by the number of hours worked over eight per day or 40 per week to calculate the amount owed for overtime for each day or week worked.
For example, an employee with a monthly salary of SR 3,000 has worked 50 overtime hours monthly. Here’s how you’d calculate your overtime salary:
Monthly Basic Salary = SR 3,000.
Normal Working Hours = 8 hours/day.
Wages per Hour = 3,000 / 30 days / 8 hours = SR 12.5.
Overtime per hour = SR 12.5 X 1.5 = SR 18.75.
Total Overtime = SR 18.75 X 50 overtime hours = SR 937.50
Basic Rules For Overtime In Saudi Arabia
Calculating overtime in Saudi Arabia can be tricky, but don’t worry—we’re here to explain everything!
- First, let’s start with the basics: According to Article 107 of the Saudi Labor Law, the employer must pay the worker an additional amount for overtime working hours. It sounds simple enough, right? But you should know a few things that might help you understand exactly how much your employees should be paid for overtime work.
- If your company operates on weekly working hours, any hours exceeding the normal daily working hour will be considered overtime. For example, if your employee usually works from 9 am-6 pm on weekdays, working hours after 6 pm will count as overtime.
- It’s also important to know that all hours worked during holidays and Eid days will be considered overtime. If a holiday falls on a weekend or regular day off for your employee, you do not need to give them an additional day off instead of their time working on that day.
Working Hours During Ramadan
If you are living in Saudi Arabia, you may be wondering how to calculate overtime during Ramadan. The answer is pretty straightforward: overtime is calculated precisely the same way during Ramadan as it is any other time of the year.
Saudi Arabia has a few regulations on working hours during Ramadan that all Saudi employers must follow when they have fasting employees. Here they are:
For Muslim Workers
Saudi Labor Law states that Muslim workers can work 6 hours a day or 36 hours per week during Ramadan. This is an average of 6 hours a day over 6 days, but there may be variations in work schedules as long as they respect Article 98 of the law.
For Non-Muslim Workers
Saudi Labor Law states that non-Muslim workers can work 8 hours a day or 48 hours per week during Ramadan. This is an average of 8 hours a day over 6 days, but there may be variations in work schedules as long as they respect Article 98 of the law.
If you are not working during Ramadan, your daily working hours will be eight hours a day or 48 hours a week. Overtime pay is calculated at 50% of your basic wage for the first two hours and 100% for each hour after that.
A: The standard working hours in Saudi Arabia are 8 hours per day and 48 hours per week, per labor laws.
Any work done beyond the standard 8 hours per day or 48 hours per week is considered overtime in Saudi Arabia.
“The employee’s hourly rate is multiplied by 1.5 for each hour worked beyond the standard working hours to calculate overtime.”
You can calculate your working hours in Saudi Arabia by subtracting your break time from your total hours worked in a day or week.
Employers must provide additional compensation for work done on weekends or public holidays through overtime pay or additional time off.
In general, overtime is not paid in Saudi Arabia. There are certain exceptions, like for gas station attendants or the Shifa hospital, but remunerating overtime is usually strictly forbidden. If the employer wants you to work overtime, he must ask your permission first. Bear this fact in mind: in Saudi Arabia, you are not required to accept additional work hours if offered to you.
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