How to calculate overtime in KSA?
Overtime Working hours Calculation in KSA
Overtime is extra work completed outside of the regularly scheduled working hours. It’s easy to calculate overtime pay in KSA. The number of additional hours worked determines how much overtime pay is due.
The calculation is multiplying the extra hours worked by the hourly rate. The overtime payment is then calculated by multiplying the sum by 1.5.
Overtime Work Rules and Regulations in KSA
- An additional sum equal to the hourly rate plus 50% of the basic wage must be paid by the employer to the employee for any overtime hours worked.
- Holidays and Eid days will count as overtime for all hours worked.
- All hours over the regular working hour shall be considered overtime if the company bases its operations on weekly working hours.
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How to Calculate Overtime in KSA?
Here is a quick calculation showing how much overtime pay a Saudi Arabian employee would receive if they put in an additional 40 hours of labor. If a worker earns SR 3000 as their base pay and puts in an additional 40 hours of work, their total overtime pay will be as follows:
- Daily wages: Monthly Salary/No. of days in a month
SR 3000/30 = SR 100
- Work hours per day
8 hours
- Hourly wage: Daily wage/ work hours per day
SR 100/8 = 12.5
- Hourly overtime wage: Hourly wage * 1.5
12.5 * 1.5 = 18.75
- Total overtime: Hourly overtime wage * Total overtime hours
18.75 * 40
SR 750
Working hours in Saudi Arabia
In Saudi Arabia, the standard workweek varies between 40 and 48 hours, making it 8 hours per day, depending on the company’s policies. Legally, the workday length during Ramadan is reduced to 6 hours, although many employers only implement this for Muslims who observe the fast during the day. The time is the same for summers and winters.
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The worker is allowed a 30-minute break per working hour, and no more than 5 hours of nonstop work may be required. Working hours should never exceed 12 hours every day. Most people work overtime in addition to their regular working hours. According to labor law, overtime pay equals 150% of the hourly rate.
FAQS
The annual limit for overtime hours in Saudi Arabia is 720. However, if you want to work more, this can be increased with the employee’s consent.
The official weekend in Saudi Arabia will now be on Fridays and Saturdays, keeping the country’s working week more in line with that of other nations. Most of the businesses in KSA were hoping for this change.
Conclusion:
Keeping in mind the above details, you can calculate your overtime working hours pay and even schedule how many hours to work.