Overtime is an extra working time of an employee than the usual 8 hours of standard working duration. You may call it extra hours, and its payment method is calculated differently than the normal working period. Mostly, labor, especially ex-pats in Saudi Arabia, used to this overtime need to survive and send a good amount to fulfill their family needs more effectively.
However, sometimes people are confused to calculate their overtime payment accurately. For avoiding this confusion, we took a simple Overtime calculation formula and rules that applied to it. Hopefully, this will clear and cover mostly queries regarding Overtime in KSA.
Rules of Overtime in Saudi Arabia:
Usually, there are eight hours of working in a day, called working hours. However, someone is looking for more than these working hours, then he must go for overtime, which is additional work. So on this basis, an employee will get paid for overtime hours.
- The employee in this overtime gets pay equal to the going hourly rate, adding 50% of his basic salary.
- Some companies pay based on weekly working hours; there, an employee doing overtime will get paid for his overtime after 48 hr. of usual working hours.
- Working on Eid days or other National events when officially announced holiday is also considered overtime. So here, an employee must get paid for his overtime.
- So, more than 8 hours of daily work and weekly 48hr of work is known as overtime, and an employee should get payment in Saudi Arabia. Besides, this may be nighttime, daytime, on holiday, or maybe on weekends depending on the company requirement.
Calculating Overtime in SA:
Here is a simple formula that lets you calculate your Overtime in SA.
Basic Wage of month = 3,000 Saudi Riyals
Daily Working Hrs. = 8 hrs.
Hourly Wages = 3,000 / 30 days / 8 hrs. = 12.5 Saudi Riyals
Hourly Overtime = 12.5 × 1.5 = 18.75 Saudi Riyals
Aggregate Overtime = 18.75 × 50 Overtime hrs. = 937.50 Saudi Riyals
Calculating Overtime in Ramadan:
Ramadan is a particular month celebrated with complete religious norms. So, daily working time changes; the same case is in Saudi Arabia. As per Labor Article 98 of SA, 48 hours of the week and 8 hours of daily work are regular. However, in Ramadan, 98 laws state that 36 hours of the week and 6 hours of daily working are considered regular hours.
So, overtime is considered above this period, and an eligible person gets paid.
People who don’t’ get paid for working in their overtime or those overtime rules are’ applied are excluded. These overtime exclusion people are as;
- People who hold high rank or position may have authority over other employees working under his instructions, such as company managers. These people aren’t eligible for overtime pay.
- Guards of a private company.
- Supplement work that should complete within standard working hours period.
- Important consigned work based on necessity.
It is all about overtime, calculating it, and who is eligible for it. Mostly, people are confused regarding calculating overtime pay; so here we took simple formula with fitting an example to it for more illustration. Besides, we also tried to explain to people who aren’t applied and aren’t eligible to take pay for it over time. So, firstly, match the criteria that are you eligible for this? If yes, then calculate your overtime wage via a simple formula.