--- title: How to Calculate Overtime in Saudi Arabia (2026 Guide + Formula & Examples) description: Learn how to calculate overtime in Saudi Arabia for 2026, including formulas, Ramadan rules, weekend pay, examples, labor law compliance, and tips. image: https://blog.zenhr.com/hubfs/How-to-Calculate-Overtime-in-KSA.png --- [![ZenHR Logo](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/692c23776fa13080da88bb57_logo-dark.svg) ![ZenHR Logo](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/692c23776fa13080da88bb57_logo-dark.svg) ZenHR Logo](https://www.zenhr.com/en) Menu button - ZenHR Software [All Modules](https://www.zenhr.com/en/modules) [Payroll](https://www.zenhr.com/en/modules/payroll) [Time Management](https://www.zenhr.com/en/modules/attendance-and-time-tracking) [Employee and Manager Self-Service (ESS & MSS)](https://www.zenhr.com/en/modules/employee-self-service) [Employee Management](https://www.zenhr.com/en/modules/employee-management) [Performance Evaluation](https://www.zenhr.com/en/modules/performance-and-evaluation) [Reporting & Analytics](https://www.zenhr.com/en/modules/reporting-and-analytics) [ZenATS Applicant Tracking System (ATS)](https://www.zenhr.com/en/modules/applicant-tracking-system) [Earned Wage Access (ZenEWA)](https://www.zenhr.com/en/earned-wage-access-zenewa) [Mobile App](https://www.zenhr.com/en/mobile) [HR Software for Construction Companies](https://www.zenhr.com/en/construction-industry) [HR Software for IT Companies](https://www.zenhr.com/en/it-industry) [HR Software for F&B Companies](https://www.zenhr.com/en/food-and-beverage-industry) [HR Software for Retail Companies](https://www.zenhr.com/en/retail-industry) [HR Software for Real Estate Companies](https://www.zenhr.com/en/real-estate-industry) [HR Software for Enterprise Companies](https://www.zenhr.com/en/enterprise-hr-software) - 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Properly calculating overtime ensures fair pay, avoids disputes, and protects organizations from legal penalties. This guide explains how overtime works in Saudi Arabia in 2026, including eligibility, calculation formulas, worked examples, weekend and holiday rules, Ramadan work hours, and automation options. This guide follows the most updated Saudi Labor Law provisions.   ## **What Is Overtime Pay in Saudi Arabia?** Overtime pay (العمل الإضافي) is additional compensation employees earn when they work beyond the legally permitted working hours. According to Article 107 of the Saudi Labor Law: **Any work exceeding 8 hours per day or 48 hours per week is counted as overtime and must be compensated at an increased rate.** Overtime compensation includes: - The hourly basic wage - An additional 50% added to the hourly wage ## **Who Is Eligible for Overtime Pay?** Most employees in Saudi Arabia are eligible for overtime. ### **Eligible Employees** Employees who exceed regular working hours under regular employment contracts and whose roles can track working hours. ### **Employees Exempt From Overtime** Certain roles may not receive overtime, depending on job duties and contract terms: | **Category** | **Details** | | --- | --- | | Executive leadership | C-level, directors, senior executives | | Managers and supervisors | If they control work hours and supervision | | Field or remote roles | When hours cannot be monitored | | Commission-only sales roles | If the pay structure replaces hourly pay | Employment contracts and internal policies should clearly define eligibility.   ## **Official Overtime Rules in Saudi Arabia (2026)** | **Category** | **Hours** | **Overtime Pay** | | --- | --- | --- | | Standard workday | 8 hours/day | Hourly wage + 50% | | Standard workweek | 48 hours/week | Hourly wage + 50% | | Ramadan for Muslim employees | 6 hours/day | Hours beyond 6 counted as overtime | | Weekends (Friday/Saturday) | Any work | Hourly wage + 50% | | National holidays and Eid | Any work | Hourly wage + 50% plus holiday entitlement | | Night shift (10 PM–4 AM)\* | May include an extra premium | Per contract or company policy | *Applicable if mentioned in the contract or policy.*   ## **Overtime Formula in Saudi Arabia** ### **Standard Overtime Calculation Formula** Overtime Pay = Hourly Rate × 1.5 × Overtime Hours ### **Hourly Rate Formula** Hourly Rate = Monthly Basic Salary ÷ 30 ÷ 8   ## **Overtime Calculation Examples** ### **Example 1: Standard Overtime** ***Basic Salary:*** *SAR 10,000****Overtime Hours:*** *10 hours* *Hourly Rate:* *10,000 ÷ 30 ÷ 8 = 41.67 SAR* *Overtime:* *41.67 × 1.5 × 10 = 625.05 SAR* ***Total Overtime Due:*** *SAR 625.05*   ### **Example 2: Friday/Weekend Overtime** ***Salary:*** *SAR 12,000****Overtime:*** *8 hours* *Hourly Rate:* *12,000 ÷ 30 ÷ 8 = 50 SAR* *Overtime:* *50 × 1.5 × 8 = 600 SAR* ***Total Due:*** *SAR 600*   ### **Example 3: Ramadan Overtime (Muslim Worker)** *Muslims work 6 hours/day during Ramadan. If an employee works 8 hours,* ***2 hours count as overtime****.* *Calculation follows the same formula as above.*   ## **Public Holiday and Eid Overtime** Employees who work on public holidays, including Eid, are entitled to: - Regular hourly wage - Plus 50% extra - Plus one full paid holiday day This makes holiday pay higher than standard overtime.   ## **Can Employers Offer Time Off Instead of Overtime?** **Yes,** employers and employees can mutually agree on time-off in lieu (TOIL). This agreement must be documented in writing. Employers cannot force employees to accept leave instead of overtime pay. ## **Penalties for Not Paying Overtime in KSA** Employers who fail to properly compensate overtime may face: - Labor penalties and fines - Retroactive payment orders - Employee lawsuits - Negative impact on Saudization score - Compliance issues in payroll audits Accurate calculation and documentation are essential for compliance.   ## **How ZenHR Helps You Calculate Overtime Accurately & Automatically** Calculating overtime can be time-consuming and error-prone, especially when factoring in different work schedules, Ramadan hours, weekend work, public holidays, and varying contract structures. Any mistake can lead to compliance violations, legal penalties, and employee dissatisfaction. ZenHR eliminates these challenges by fully automating overtime calculations according to the Saudi Labor Law. ### **Key Benefits of Using ZenHR for Overtime Calculation** | **Feature** | **How It Helps** | | --- | --- | | Automated overtime rules | Applies standard, weekend, public holiday, and Ramadan rules automatically | | Accurate hourly rate calculation | Ensures formulas follow KSA labor standards and company policies | | Integrated attendance system | Pulls attendance and punch-in data directly into payroll | | Custom rules for departments and shifts | Tailors overtime policies for different employee groups | | Compliance with Saudi Labor Law | Ensures accuracy and legal compliance with every payroll cycle | | Transparent employee requests | Employees can view their overtime entries and payroll breakdowns | | Detailed reporting | Offers complete clarity through employee and admin dashboards | | Overtime reflected on payslips | Ensures full transparency for payroll review and audits | ## **Why Businesses in Saudi Arabia Choose ZenHR** - Reduces payroll errors - Saves time on manual HR calculations - Ensures 100% compliance with Saudi labor regulations Improves employee trust and transparency - Helps HR and finance teams work smarter, not harder With ZenHR, overtime calculation becomes effortless, accurate, and fully compliant — giving HR teams more time to focus on strategic initiatives instead of manual processing. ## **Frequently Asked Questions (FAQ)** ### **1) What is the overtime rate in Saudi Arabia?** Overtime is paid at **1.5 times the hourly wage**. ### **2) Can allowances be included in overtime calculation?** Overtime is based on **basic salary**, unless a company policy or contract specifies otherwise. ### **3)What counts as overtime in Saudi Arabia?** Hours worked beyond **8 hours per day** or **48 hours per week**. ### **4) Is overtime mandatory for employers to pay?** Yes, if employees are required to work extra hours and fall under the eligible categories. ### **5) Are part-time employees entitled to overtime?** Yes, if they exceed their agreed contractual hours. ### **6) What is the Ramadan overtime rule?** Muslim employees working beyond **6 hours per day** during Ramadan must be paid overtime. ### **7) Do employees working remotely get overtime?** If hours are monitored and the contract includes overtime eligibility, yes. Otherwise, it may not apply. ### **8) Can overtime be paid monthly in payroll?** Yes, overtime must be paid as part of the payroll cycle. ### **10) What happens if an employee refuses overtime?** They can only refuse overtime if they are being asked to exceed maximum limits or if their contract does not require it. ### **11) Is overtime allowed every day?** Yes, within legal limits, but total working hours, including overtime, should not exceed labor-law restrictions related to health and safety.   ## **Conclusion** Calculating overtime correctly in Saudi Arabia is essential for payroll accuracy and legal compliance. Employers must follow the Saudi Labor Law formula, consider Ramadan and holiday rules, and ensure proper documentation. Using automated HR systems like ZenHR ensures accurate overtime calculation, regulatory compliance, and transparent payroll. **Start automating overtime and payroll with ZenHR -** [**Request a demo**](https://www.zenhr.com/en/request-demo) ![Amanee Hasan](https://blog.zenhr.com/hubfs/1782294238755%20(1).jpg) ###### Amanee Hasan Amanee Hasan is a Senior Content Strategist at ZenHR, an award-winning and top-rated HR software solution serving organizations across the MENA region. She specializes in SEO, UX writing, copywriting, product marketing, and content covering the latest HR trends, labor laws, HR technology, and the future of work. 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