The overtime formula
Article 107 requires employers to pay for each overtime hour the hourly wage plus 50% of the basic hourly wage.
| Item | Formula |
|---|---|
| Actual hourly wage | (basic + allowances) ÷ 30 ÷ 8 |
| Overtime premium | basic ÷ 30 ÷ 8 × 50% |
| Pay per overtime hour | hourly wage + premium |
Example: basic SAR 6,000 and allowances SAR 2,000. Hourly wage = 8,000 ÷ 240 = SAR 33.33, premium = 25 × 50% = SAR 12.50, so each overtime hour pays SAR 45.83.
FAQ
Does working on weekends and holidays count as overtime?
Yes. Hours worked on rest days and official holidays count as overtime and use the same formula.
Can overtime be compensated with time off instead of money?
Yes, if both sides agree in writing, typically in the contract or company policy.