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العربية
Work and labor law

How overtime pay is calculated in Saudi Arabia

The Article 107 formula, the hourly rate, what counts as overtime, and why two common methods give different answers.

Updated: 1 min read

Tools for this guide

The formula (Article 107)

Overtime hour = hourly wage + 50% of the basic hourly wage

  • Hourly wage = monthly wage (basic + allowances) ÷ 30 ÷ 8
  • Basic hourly wage = basic salary ÷ 30 ÷ 8

Worked example

Basic salary 6,000 SAR, housing 1,500, transport 500 (8,000 in total), and 10 overtime hours:

Calculation Amount
Hourly wage 8,000 ÷ 240 33.33
Basic hourly wage 6,000 ÷ 240 25.00
One overtime hour 33.33 + 50% × 25 45.83
10 hours 45.83 × 10 458.33

The basic-only method

Many employers calculate overtime on the basic salary alone: basic hourly × 1.5 = 25 × 1.5 = 37.50 an hour, or 375 SAR for 10 hours. If you receive allowances, this gives less than the law’s wording. The overtime calculator shows both.

What counts as overtime

  • Hours beyond 8 a day or 48 a week, depending on which standard your employer uses (Article 98).
  • In Ramadan, hours beyond 6 a day or 36 a week for Muslim employees.
  • All work on your weekly rest day or on public holidays.

Track your hours with the work hours calculator, and read the full rules in working hours under the Saudi Labor Law.

Questions people ask

How is overtime calculated in Saudi Arabia?

Each overtime hour is paid at your hourly wage plus 50% of your basic hourly wage (Article 107). The hourly wage is the monthly wage ÷ 30 ÷ 8.

What counts as overtime?

Hours beyond 8 a day or 48 a week (6 and 36 in Ramadan for Muslim employees), and any work on your weekly rest day or public holidays.

Can I get time off instead?

Since the 2025 amendments, yes, but only with your written agreement.

This guide is general information, not legal or tax advice. Check official sources for your own situation.

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