Hourly wage
In one sentenceThe share of one hour in the employee's monthly wage. It is used to calculate overtime, deductions for lateness and part-time pay.
Simply put
You calculate the hourly wage by dividing the monthly wage by the number of working hours in the month. For illustration it is common to assume 30 days and 8 hours a day, that is 240 hours.
For overtime you need two figures: the hourly wage from the actual wage, and the basic hourly wage from the basic salary, because an overtime hour = the hourly wage + 50% of the basic hourly wage (Article 107 of the Saudi Labor Law).
Worked example
A pharmacy employee has a basic salary of 6,000 SAR and a total wage of 8,400 SAR (assuming 30 days and 8 hours a day for illustration).
Hourly wage: 8,400 ÷ 24035
Basic hourly wage: 6,000 ÷ 24025
Overtime hourly rate: 35 + (50% × 25)47.50
Hourly wage / overtime hourly rate35 / 47.50 SAR
Formula: Hourly wage = monthly wage ÷ (30 × 8)
Don't confuse it with
OvertimeThe hourly wage is the basis of the calculation, while overtime is hours beyond the shift paid at the hourly wage plus the increase.