Overtime
In one sentenceThe hours the employee works beyond normal working hours. For each of them the employee is entitled to the hourly wage plus 50% of the basic hourly wage.
Simply put
Under Article 107 of the Saudi Labor Law, the overtime hourly rate = the hourly wage + 50% of the basic hourly wage.
Note that the increase is calculated on the basic only, while the hourly wage itself is calculated on the wage. Record the hours accurately, because an error in them builds up month after month.
Worked example
A restaurant employee has a basic of 6,000 SAR and a total wage of 7,500 SAR, and worked 10 overtime hours in the month (assuming 30 days and 8 hours a day for illustration).
Hourly wage: 7,500 ÷ 24031.25
Basic hourly wage: 6,000 ÷ 24025
Overtime hourly rate: 31.25 + (50% × 25)43.75
10 hours × 43.75437.50
Overtime pay for the month437.50 SAR
Formula: Number of hours × (hourly wage + 50% × basic hourly wage)