How to Compute Overtime Pay in Saudi Arabia (article 107)

Understanding how to compute overtime pay in Saudi Arabia is essential for every employee, whether you are a Saudi national or an expatriate worker, who has ever been asked to stay beyond regular working hours. Article 107 of the Saudi Labor Law (Royal Decree No. M/51) establishes the core rule: an employer must pay a premium equal to the worker’s hourly wage plus 50 percent of basic pay for every hour of overtime.

This guide walks through the precise formula, provides worked numeric examples using realistic Saudi Riyal figures, explains the special treatment of Fridays, Eid holidays and other public holidays, outlines the annual 720-hour cap on additional working hours, and sets out the step-by-step process for claiming unpaid overtime through the Ministry of Human Resources and Social Development (HRSD) and the labour tribunals.

Legal Framework: Article 107 and Related Saudi Labor Law Provisions

Article 107 of the Saudi Labor Law is the statutory cornerstone for overtime compensation. In the official English text of the Law (Royal Decree No. M/51), the provision directs that the employer shall pay the worker for overtime working hours an additional amount equal to the hourly wage plus 50 percent of basic wage. The Arabic text is the legally authoritative version, but the English translation published through WIPO Lex conveys the same operative rule: overtime is compensated at 150 percent (1.5×) of the regular hourly rate.

Three additional principles flow directly from Article 107 and its implementing regulations:

• Hours worked on holidays and rest days count as overtime. Any hour an employee works on an official public holiday or on the weekly rest day is treated as an overtime hour and must be compensated at the 1.5× rate, unless the contract provides for an even higher multiplier.
• An annual cap applies. Under HRSD guidance and the Executive Regulations, total additional working hours may not exceed 720 hours per year, unless the employer obtains the worker’s consent and any required regulatory approval to extend beyond that threshold.
• Standard working hours set the baseline. The Saudi Labor Law prescribes a maximum of eight actual working hours per day or 48 hours per week as the normal schedule. Hours worked beyond these limits trigger Article 107’s overtime premium.

Where Article 107 Applies, Employees Versus Exempt Categories

Article 107 applies to most private-sector employees covered by the Saudi Labor Law. However, certain categories may be wholly or partially exempt from its overtime provisions. Senior management personnel whose contracts expressly exclude overtime entitlement, employees in supervisory roles who control their own working hours, and workers in specific industries governed by separate shift-pattern regulations may fall outside the scope of Article 107. The precise boundaries depend on contract wording and, in disputed cases, on interpretation by the labour tribunals. Employees should review their employment contracts carefully: if the contract is silent on overtime exclusion, the statutory 1.5× default under Article 107 applies.

How to Compute Overtime Pay in Saudi Arabia: Step-by-Step Calculation Method

To calculate overtime from basic salary in KSA, you need only four pieces of information: your monthly basic salary, the number of working days in a month (legally standardised at 30), the number of regular working hours per day (eight), and the total overtime hours you have worked. The formula below applies to every employee entitled to overtime under Article 107.

The Formula

Apply these four steps in sequence:

1. Daily wage = Monthly basic salary ÷ 30
2. Hourly wage = Daily wage ÷ 8
3. Overtime hourly rate = Hourly wage × 1.5 (that is, the regular hourly wage plus 50 percent)
4. Total overtime pay = Overtime hourly rate × Number of overtime hours worked

The critical input is basic salary, not gross pay. Housing allowances, transport allowances, commission payments and other benefits are generally excluded from the overtime base unless the employment contract explicitly includes them in the definition of basic wage.

Worked Example A, Monthly Basic Salary of SR 6,000

Assume an employee with a monthly basic salary of SR 6,000 works 20 overtime hours in a given month.

The employee is entitled to SR 750 in overtime pay for that month, on top of the regular SR 6,000 basic salary.

Worked Example B, Hourly or Part-Time Variation

For a part-time employee paid an agreed hourly rate of SR 40, the calculation skips the first two steps because the hourly wage is already known. If this employee works 10 overtime hours in a month:

Where an employee earns commissions or piece-rate bonuses, those variable elements are typically excluded from the overtime calculation unless the employment contract defines them as part of basic wage. Industry observers note that this distinction, basic versus gross, is the single most common source of payroll disputes in Saudi overtime claims.

Common Mistakes to Avoid

• Using gross salary instead of basic salary. Overtime is calculated on the basic wage only. Including housing, transport or food allowances inflates the base and creates discrepancies, or, more commonly, employers use the gross figure to argue they have already overpaid.
• Dividing by actual calendar days instead of 30. The Saudi Labor Law standardises the monthly divisor at 30 days regardless of whether the month has 28, 29 or 31 calendar days.
• Ignoring contractual definitions. Some contracts redefine “basic wage” to include certain allowances. Always read the contract before running the formula.
• Confusing 1.5× with an additional 1.5×. The statutory rate is the hourly wage plus 50 percent, in other words, 1.5 times the hourly wage, not 2.5 times.

Friday, Weekly Rest Day and Public-Holiday (Eid) Overtime Calculations

Under Article 107 of the Saudi Labor Law, any hours worked on the weekly rest day or on an official public holiday are classified as overtime. The same 1.5× multiplier applies. This means an employee called in on a Friday (the standard weekly rest day for most private-sector workers) or during Eid al-Fitr or Eid al-Adha earns at least 150 percent of the regular hourly rate for every hour worked.

Friday Overtime Calculation in Saudi Arabia, Example

Using the same SR 6,000 basic-salary employee from Example A, assume the employer asks the worker to cover a full eight-hour Friday shift:

Compare this to a normal eight-hour weekday at SR 200 (SR 25 × 8). The Friday premium adds SR 100 on top of the standard daily wage, a 50 percent uplift for the entire day.

Eid Holiday Overtime Calculation in Saudi Arabia, Example

The same formula applies during Eid al-Fitr, Eid al-Adha, Saudi National Day and any other gazette-declared public holiday. If the SR 6,000 employee works one eight-hour shift on an Eid day, the overtime pay is again SR 300 (SR 37.50 × 8). Some employers voluntarily offer double-time or even higher premiums for holiday shifts; those additional benefits are permissible but not legally required. Employees should check their contracts and any company policies or collective agreements for terms that exceed the statutory minimum. HRSD guidance confirms that the Article 107 rate is a floor, not a ceiling.

Maximum Overtime Hours in Saudi Arabia, Night Work, Ramadan and Special Rules

The Saudi Labor Law and its Executive Regulations impose both daily and annual limits on overtime. HRSD guidance stipulates that total additional working hours may not exceed 720 hours per year. An employer wishing to require overtime beyond that annual ceiling must typically obtain the employee’s written consent and may need to seek approval from HRSD, depending on the sector and workforce classification.

Beyond the annual cap, several special situations affect how overtime is calculated and recorded:

• Alternative daily schedule. Employers may structure the working day as nine hours on some days and fewer on others, provided the weekly total does not exceed 48 hours. Overtime accrues only once the daily or weekly threshold is exceeded.
• Ramadan reduced hours. During the holy month of Ramadan, actual working hours for Muslim employees are reduced to six hours per day or 36 hours per week. Any hour worked beyond six in a Ramadan day is overtime and must be paid at the 1.5× rate.
• Night work. While the Saudi Labor Law does not prescribe a separate night-shift premium above the Article 107 rate, some contracts and sector-specific regulations provide higher pay for overnight shifts. Where such clauses exist, the overtime multiplier is applied to the enhanced night-shift hourly rate.

How to Treat Irregular Shift Workers

Employees on rotating or irregular shift patterns should track overtime on both a daily and weekly basis. If a shift roster results in more than eight hours on any given day, those extra hours are overtime, even if the total weekly hours remain at or below 48. Conversely, if the daily shifts remain at eight hours but the weekly total exceeds 48, the excess hours attract the overtime premium. The employee (or their representative) should prepare a comparison schedule showing rostered hours against the legal maxima to identify all overtime entitlement accurately.

Evidence and Payroll Records: Proving Unpaid Overtime

Winning an unpaid-overtime claim, whether before HRSD or in the labour tribunals, depends almost entirely on documentary evidence. The burden of proving that overtime was worked and not paid rests primarily on the employee, although HRSD inspectors may request payroll records directly from the employer during an investigation.

Employees should collect and preserve the following records as early as possible:

• Employment contract. The original (or a certified copy) showing basic salary and any overtime clauses.
• Payroll slips / wage statements. Monthly payslips showing basic pay, allowances and any overtime amounts already paid.
• Bank transfer records. Salary credit confirmations from the Wage Protection System (WPS) or bank statements proving the actual amounts received.
• Attendance and clocking records. Biometric, CCTV or electronic time-stamp logs showing actual start and finish times.
• Shift rosters and schedules. Published or emailed rosters that required the employee to work beyond normal hours.
• Written instructions to work overtime. Emails, WhatsApp messages, or memos from a supervisor directing the employee to stay late or report on a rest day.
• Witness statements. Declarations from colleagues who worked the same overtime shifts.

Once collected, prepare a simple calculation table that compares the employer’s recorded overtime payments against the statutory entitlement under Article 107. This side-by-side comparison, showing hours worked, the correct OT rate and the shortfall, is the single most persuasive exhibit in an HRSD complaint or labour-court filing. Preserve all original documents; certified copies are preferred for court submissions.

How to Claim Unpaid Overtime Pay in Saudi Arabia (HRSD Complaint to Labour Tribunal)

If your employer has not paid the overtime you are owed, Saudi law provides a clear escalation pathway. The process moves from internal resolution through HRSD mediation and, if necessary, to adjudication before the labour tribunals. Understanding your overtime pay rights in Saudi Arabia is the first step toward recovery.

Step 1, Internal Resolution

Begin with a formal written request to your employer. Address it to the HR department or your direct manager and state clearly: the dates and hours of overtime worked, the correct Article 107 calculation, the amount owed and a reasonable deadline for payment (14 days is customary). Keep a dated copy of this letter and any response. Many disputes are resolved at this stage, particularly when the employee demonstrates familiarity with the statutory formula.

Step 2, HRSD Complaint

If the employer does not pay or respond, file a wage complaint through the HRSD online portal or the national services portal at my.gov.sa. You will need your Iqama or national ID, a copy of the employment contract, payslips and the calculation schedule described above. HRSD will typically attempt mediation between the parties and may dispatch an inspector to review the employer’s payroll records. Early indications suggest that HRSD processing times for wage complaints range from approximately two to eight weeks, depending on caseload and complexity. Where HRSD finds a violation, it may issue a compliance order requiring the employer to pay the outstanding overtime.

Step 3, Labour Court Adjudication

If HRSD mediation fails or the employer refuses to comply with a HRSD order, the employee may escalate the dispute to the labour tribunals. Filing is typically done through a lawyer, and the first hearing is generally scheduled within one to four months of filing. Remedies available through the court include payment of all unpaid overtime, compensation for delay and, in some cases, penalties against the employer. The evidence standard is documentary: the court will expect payslips, attendance records and the calculation table. The likely practical effect of bringing strong documentary evidence is a faster resolution, as labour judges in Saudi Arabia increasingly rely on WPS data and employer payroll records to verify claims.

When to Instruct Counsel

Consider engaging an employment litigation lawyer if any of the following apply:

• The employer has expressly refused to pay and contests the calculation.
• You face retaliation (demotion, termination or transfer) after raising the overtime issue internally.
• The claim involves complex contractual terms, multiple pay periods or a large aggregate amount.
• You are an expatriate worker and your residency status may be affected by the dispute.

Overtime Claim Timelines: Comparative Table

The table below summarises the typical stages, responsible bodies and estimated timelines for an unpaid-overtime claim in Saudi Arabia. These are indicative ranges; actual durations depend on case complexity, employer cooperation and tribunal workload.

Next Steps

Knowing how to compute overtime pay in Saudi Arabia under Article 107 is only the beginning. If your employer has failed to pay the overtime you are owed, the legal framework provides clear remedies, from HRSD mediation through to full labour-court adjudication. Gather your evidence early, prepare your calculation table, and take action within the statutory timelines. For complex claims, employer retaliation or high-value disputes, professional legal advice from an employment litigation specialist can make the difference between a successful recovery and a protracted dispute.

Sources

1. Ministry of Human Resources & Social Development, Overtime Hours (Knowledge Centre)
2. Saudi Labour Law (English), WIPO Lex (Royal Decree No. M/51)
3. Official Saudi Gazette / Laws Portal, Labor Law
4. HRSD, Labor Law Overview (Regulations & Implementation)
5. HRSD Employer Compliance Guide (PDF)
6. National Portal, Labor & Employment (MyGov.sa)