In the Kingdom of Saudi Arabia (KSA), overtime pay isn’t just a benefit – it’s a legal requirement under the Saudi Labor Law. Whether you’re an employee looking to check your payslip, or an employer who wants to stay compliant, knowing how overtime is calculated is essential. In this post, we’ll break down what the law says, how to calculate overtime, and introduce an easy-to-use online tool to help you do it effortlessly.
⚖️ What Does Saudi Labor Law Say About Overtime?
Under Article 107 of the Saudi Labor Law:
- Employees who work more than the standard daily or weekly hours must be paid overtime.
- The standard workweek is usually 48 hours (8 hours per day, 6 days a week) or 40 hours for some professions.
- Overtime must be compensated at a rate of basic salary + 50% (i.e., total of 1.5x the normal hourly rate).
- Work performed on weekends, public holidays, or Eid holidays is also treated as overtime, often at higher rates (sometimes double).
📊 How to Calculate Overtime Pay
Let’s go step by step:
1️⃣ Calculate the employee’s hourly wage
Monthly Basic Salary × 12 ÷ 365 (or 360 days depending on contract) ÷ daily duty hours (e.g., 8 hours)
2️⃣ Apply the overtime multiplier
Hourly wage × 1.5 (or 2.0 for special days)
3️⃣ Calculate total overtime amount
Overtime hourly rate × number of overtime hours
4️⃣ Total monthly salary including overtime
Monthly Basic Salary + total overtime amount
📌 Example:
Let’s say:
- Monthly Basic Salary: SAR 4,000
- Days basis: 365 days
- Duty hours per day: 8
- Overtime hours: 10
- Multiplier: 1.5
1️⃣ Daily salary: 4,000 × 12 ÷ 365 ≈ SAR 131.50
2️⃣ Hourly salary: 131.50 ÷ 8 ≈ SAR 16.44
3️⃣ OT hourly rate: 16.44 × 1.5 ≈ SAR 24.66
4️⃣ Total OT amount: 24.66 × 10 = SAR 246.60
5️⃣ Total salary including OT: 4,000 + 246.60 ≈ SAR 4,246.60
📱 Use a Free Online Overtime Calculator
Doing this manually can be time-consuming, especially if your duty hours, days basis, or OT multiplier change.
To make this easier, you can use the mobile-friendly Overtime Calculator by SiS Tools which helps you:
✅ Choose between Normal Mode or Reversal Mode
✅ Export results to PDF for record keeping
✅ Calculate using custom duty hours and multipliers
✅ Supports currencies like SAR, USD, AED