--- title: A Complete Guide of Overtime Calculation in Saudi Arabia (2025 Update) description: Learn how overtime is calculated in Saudi Arabia in 2025. Understand labor law regulations, overtime formulas, night shifts, Ramadan rules, and your legal rights as an employee or employer. image: https://blog.zenhr.com/hubfs/Overtime-Calculation-in-Saudi-Arabia.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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It typically applies to hours worked: - After **48 hours per week** or **8 hours per day** - On **weekends or official holidays** - During **night shifts** (with additional rules) Overtime pay is legally required in most cases unless the employee is in a position **exempt from overtime**, such as a managerial role. ## **Standard Working Hours in Saudi Arabia** Under the **Saudi Labor Law**: - The **maximum working hours** are **8 hours per day** or **48 hours per week**. - During **Ramadan**, working hours for Muslim employees are reduced to **6 hours per day** or **36 hours per week**. Any hours worked **beyond these limits** are considered **overtime** and must be compensated accordingly.   ## **Overtime Calculation Formula in Saudi Arabia** The basic **overtime calculation formula** is as follows: **Overtime Pay = Regular Hourly Wage × 1.5 × Overtime Hours Worked** To break it down: 1. **Monthly Salary ÷ 30 ÷ 8 = Hourly Wage** 2. **Hourly Wage × 1.5 = Overtime Rate** 3. **Overtime Rate × Extra Hours = Total Overtime Pay** ### **Example:** If an employee earns SAR 6,000/month and works 10 extra hours: - Hourly Rate = 6,000 ÷ 30 ÷ 8 = SAR 25 - Overtime Rate = SAR 25 × 1.5 = SAR 37.5 - Overtime Pay = 10 × SAR 37.5 = SAR 375   ## **When Is Overtime Mandatory?** According to **Article 107** of the Saudi Labor Law, employers must pay overtime in these scenarios: - If an employee works **more than 8 hours a day** - If an employee works **more than 48 hours in a week** - If an employee works on **weekends** - If an employee works on **public holiday** - **Night work** between 10 PM and 6 AM (additional rules may apply)   ## **Overtime Pay on Official Holidays & Weekends** Employees who work on **weekends or official public holidays** are entitled to: - **The regular wage for the day** plus - **Overtime pay (150%)** for each hour worked. This means holiday work is essentially compensated at **double pay**. **Example:** Working 8 hours on a public holiday would entitle the employee to one day’s wage plus 8 hours at 150% of the hourly rate.   ## **Overtime Pay During Ramadan** During the holy month of **Ramadan**, working hours for **Muslim employees** are legally reduced to **6 hours per day**. Any hours beyond that are counted as overtime and must be compensated at the overtime rate. Non-Muslim employees generally follow the regular schedule unless the company implements a unified Ramadan policy.   ## **Who Is Exempt from Overtime Pay?** Not all employees are entitled to overtime. According to Saudi labor regulations, **overtime exemptions** may apply to: - **Managers and supervisors** with hiring or disciplinary authority - **Sales employees** working outside the office premises - **Employees with flexible work contracts**, depending on contract terms It's essential for employers to clearly define these roles in employment contracts and organizational charts.   ## **Penalties for Non-Compliance** Employers who **fail to compensate for overtime hours** may face: - **Labor court cases** - **Financial penalties** imposed by the Ministry of Human Resources and Social Development (MHRSD) - Potential **reputation damage** and employee turnover Employees can **file complaints** through platforms like **Musaned** or **MHRSD’s official portal**.   ## **Best Practices for Employers** To avoid legal disputes and maintain employee satisfaction, employers should: - Track employee work hours accurately using **HR software** or **biometric systems** - Update employment contracts to reflect **working hour expectations.** - Ensure **clear policies** for overtime, Ramadan shifts, and holidays. - Use **automated payroll systems** that comply with Saudi labor regulations. ## **Overtime and Part-Time Workers** Part-time employees are also entitled to overtime **if they exceed the agreed working hours** in their contract. The same 150% overtime pay rule applies. For example, if a part-time employee is contracted for 4 hours per day but works 6, the extra 2 hours are considered overtime.   ## **FAQs About Overtime in Saudi Arabia** ### **1.What is the overtime pay rate in Saudi Arabia?** Overtime pay is calculated at **150% of the employee’s hourly wage** for each additional hour worked beyond standard hours. ### **2.How is the hourly wage calculated in Saudi Arabia?** Divide the monthly salary by **30 days**, then divide by **8 hours** to get the hourly rate. ### **3.Are weekends and holidays considered overtime in Saudi Arabia?** Yes. Any work done on weekends or public holidays must be compensated at **double pay** (regular wage + 150%). ### **4.What are the working hours during Ramadan in KSA?** For Muslim employees, the maximum is **6 hours per day** or **36 hours per week**. ### **5.Is the night shift considered overtime in Saudi labor law?** Yes. Work done between **10 PM and 6 AM** may require additional compensation, especially for non-shift-based roles. ### **6.Can overtime be compensated with time off instead of pay?** Yes, but **only if agreed upon** in the employment contract and in line with labor regulations.   ## **Understanding Your Rights and Responsibilities** Whether you are an **employee calculating your overtime pay** or an **employer managing payroll**, understanding the rules around **overtime in Saudi Arabia** is essential for compliance and fairness. With labor laws updated regularly and enforcement becoming stricter, using reliable **HR systems** and keeping your company policies aligned with the latest **Ministry of Human Resources regulations** is the best way to stay compliant. For the most accurate and up-to-date information, refer to the official **Saudi Labor Law 2025** or consult with certified HR professionals in the Kingdom.   ## **Simplify Overtime Management with ZenHR** Managing overtime calculations manually can be time-consuming and error-prone, especially when dealing with shift variations, holiday work, and employee-specific exceptions. That’s where [**ZenHR**](https://www.zenhr.com/en/modules) comes in. ZenHR’s **overtime management tools** help HR teams and payroll professionals in Saudi Arabia stay compliant with labor laws while simplifying the entire overtime process. With ZenHR, you can: - View all overtime records in one place and filter based on employee, date, or status - Add new overtime entries or import them in bulk. - Create **overtime batches** as income or convert extra hours into **vacation balances.** - **Automate overtime transactions** based on actual working hours and shifts. - Allow employees to **submit overtime requests** directly through their portal. - Analyze trends through the **Accumulative Attendance Report**, which now includes more filters, expanded columns, and actionable insights. Whether you're managing a small business or a large enterprise, ZenHR ensures you’re always in control, accurately tracking extra hours, reducing manual work, and staying aligned with **Saudi labor regulations**. Learn more about how [**ZenHR**](https://www.zenhr.com/en/request-demo) can help you **automate overtime calculations** and **optimize payroll accuracy** in Saudi Arabia. ![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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