Statutory Overtime Regulations under Article 107 of Saudi Labor Law
Article 107 of the Saudi Labor Law mandates that overtime work must be compensated with a statutory premium:
- Regular Working Days: The worker must be paid an overtime wage equal to the normal hourly rate plus 50% of the basic wage (150% total).
- HoliDays & Eids: Overtime worked during official statutory holiDays (Eid al-Fitr, Eid al-Adha, National Day, Founding Day) is compensated at 200% (double the normal wage).
- Calculation Formula: Normal hourly wage is calculated by dividing monthly basic salary by 240 Hours (standard 8-hour workday over 30 Days).
Frequently Asked Questions
The standard formula divides the monthly basic wage by 240 Hours (or actual contracted monthly Hours) to obtain the single hourly rate, then multiplies by 1.5 for normal overtime or 2.0 for holiday overtime.
Saudi Labor Law regulations specify that annual overtime Hours should not exceed 720 Hours per employee without special ministry authorization.