Overtime pay in Saudi Arabia is a core entitlement for employees and a strict compliance requirement for employers under the Saudi Labor Law. Properly calculating overtime ensures fair pay, avoids disputes, and protects organizations from legal penalties.
This guide explains how overtime works in Saudi Arabia in 2025, 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.
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:
Most employees in Saudi Arabia are eligible for overtime.
Employees who exceed regular working hours under regular employment contracts and whose roles can track working hours.
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.
|
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 Pay = Hourly Rate × 1.5 × Overtime Hours
Hourly Rate = Monthly Basic Salary ÷ 30 ÷ 8
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
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
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.
Employees who work on public holidays, including Eid, are entitled to:
This makes holiday pay higher than standard 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.
Employers who fail to properly compensate overtime may face:
Accurate calculation and documentation are essential for compliance.
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.
|
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 |
With ZenHR, overtime calculation becomes effortless, accurate, and fully compliant — giving HR teams more time to focus on strategic initiatives instead of manual processing.
Overtime is paid at 1.5 times the hourly wage.
Overtime is based on basic salary, unless a company policy or contract specifies otherwise.
Hours worked beyond 8 hours per day or 48 hours per week.
Yes, if employees are required to work extra hours and fall under the eligible categories.
Yes, if they exceed their agreed contractual hours.
Muslim employees working beyond 6 hours per day during Ramadan must be paid overtime.
If hours are monitored and the contract includes overtime eligibility, yes. Otherwise, it may not apply.
Yes, overtime must be paid as part of the payroll cycle.
They can only refuse overtime if they are being asked to exceed maximum limits or if their contract does not require it.
Yes, within legal limits, but total working hours, including overtime, should not exceed labor-law restrictions related to health and safety.
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.
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