Overtime Calculation in Saudi Arabia 2025
Overtime refers to any hours worked beyond the legally mandated working hours as defined by the Saudi Labor Law. It typically applies to hours worked:
Overtime pay is legally required in most cases unless the employee is in a position exempt from overtime, such as a managerial role.
Under the Saudi Labor Law:
Any hours worked beyond these limits are considered overtime and must be compensated accordingly.
The basic overtime calculation formula is as follows:
Overtime Pay = Regular Hourly Wage × 1.5 × Overtime Hours Worked
To break it down:
If an employee earns SAR 6,000/month and works 10 extra hours:
According to Article 107 of the Saudi Labor Law, employers must pay overtime in these scenarios:
Employees who work on weekends or official public holidays are entitled to:
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.
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.
Not all employees are entitled to overtime. According to Saudi labor regulations, overtime exemptions may apply to:
It's essential for employers to clearly define these roles in employment contracts and organizational charts.
Employers who fail to compensate for overtime hours may face:
Employees can file complaints through platforms like Musaned or MHRSD’s official portal.
To avoid legal disputes and maintain employee satisfaction, employers should:
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.
Overtime pay is calculated at 150% of the employee’s hourly wage for each additional hour worked beyond standard hours.
Divide the monthly salary by 30 days, then divide by 8 hours to get the hourly rate.
Yes. Any work done on weekends or public holidays must be compensated at double pay (regular wage + 150%).
For Muslim employees, the maximum is 6 hours per day or 36 hours per week.
Yes. Work done between 10 PM and 6 AM may require additional compensation, especially for non-shift-based roles.
Yes, but only if agreed upon in the employment contract and in line with labor regulations.
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.
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 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:
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 can help you automate overtime calculations and optimize payroll accuracy in Saudi Arabia.