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Many get confused while computing the overtime in KSA due to ignorance of overtime calculation and working hours provisions of Labor Law in Saudi Arabia.
Working Hours in Saudi Arabia
According to Article 98 of Saudi Labor Law, there are 48 working hours in a week and 8 hours a day. If an employer requires a worker to work more than that, the worker is entitled to get overtime.
- According to Article 101 of Saudi Labor Law, the maximum working hours in one day cannot exceed 11 hours.
- Moreover, an employer cannot request a worker to work for more than 5 straight hours without giving a 30 mins break.
- However, the period for prayers, meals, and rest is not included in the normal working hours as per Article 102 of Saudi Labor Law.
It is worth mentioning that if you are working from 9 am to 6 pm with one hour break, your actual working hours are 8.
Working Hours during Ramadan
As per Article 98 of Saudi Labor Law, the working hours during Ramadan are;
- 6 hours a day or 36 hours a week for Muslim workers.
- 8 hours a day or 48 hours a week for Non-Muslim workers.
This is the reason most of the offices in Saudi Arabia remain open from 10 am to 4 pm during Ramadan.
Overtime calculation in KSA
The overtime will be paid at 150% of the normal wage rate as per Article 107 of Saudi Labor Law.
- If the organization is operated on the basis of weekly working hours, any work in excess of 48 hours will be considered overtime.
- If the organization is operated on the basis of daily working hours, any work in excess of 8 hours will be considered overtime.
- All the work during public holidays such as Eid vacation or weekends will be considered overtime.
The regulations related to overtime and working hours will not be applied to persons filling high ranking managerial positions as per Article 108 of Saudi Labor Law.
How to compute overtime in Saudi Arabia?
We have explained how to compute overtime in Saudi Arabia with an illustration. Keep in mind that the overtime will be computed on the basis of basic salary.
An employee with a monthly basic salary of SR 3,000 has worked for 50 overtime hours in a month.
- 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.
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