What does this tool calculate?
Every hour an employee works beyond the statutory working hours counts as overtime and is paid at a higher rate than a regular hour. The tool calculates the overtime hourly wage and the month's overtime pay from the basic salary, the total wage and the number of hours, and warns you if the regular working hours themselves exceed the statutory limit.
The statutory rule
- Article 107 of the Labor Law: for overtime hours, the employer pays a wage equal to the hourly wage plus 50% of the basic wage.
- Article 98: a worker may not be employed for more than 8 hours a day or 48 hours a week, and in Ramadan, for Muslims, 6 hours a day or 36 hours a week.
The formulas
- Regular hourly wage = total wage ÷ 30 ÷ daily working hours.
- Basic hourly wage = basic salary ÷ 30 ÷ daily working hours.
- Overtime hourly wage = regular hourly wage + 50% × basic hourly wage.
- Month's overtime pay = overtime hourly wage × number of overtime hours.
The wage is based on 30 days per month; if the employment contract sets a different basis, use that instead.
Worked example
A basic salary of 6,000 SAR and a total wage of 8,000 SAR, 8 working hours a day, and 20 overtime hours in the month:
- Regular hourly wage = 8,000 ÷ 30 ÷ 8 = 33.33 SAR, and basic hourly wage = 6,000 ÷ 30 ÷ 8 = 25.00 SAR.
- Overtime hourly wage = 33.33 + 50% × 25.00 = 45.83 SAR.
- Month's overtime pay = 45.83 × 20 = 916.67 SAR.
In Ramadan, with 6 working hours a day, the overtime hourly wage becomes 61.11 SAR for the same wage.
Limits of the tool
The tool calculates overtime pay on regular working days; work on holidays and days off has its own rules. The final reference is the official text and your business's account with the competent authority.
Frequently asked questions
Is the 50% premium calculated on the total wage?
What are the working hours in Ramadan?
Why 30 days?
Content last reviewed: 2026-10-28