How to Calculate Overtime in Saudi Arabia 2026 (Labor Law Article 107)
Quick answer: In the Saudi private sector, each overtime hour is paid as the normal hourly wage + 50% of the basic hourly wage (Labor Law Article 107). The hourly wage is the monthly wage divided by 30 days × 8 hours = 240 hours. Overtime is capped at 720 hours a year unless the worker agrees to more.
When does overtime start?
- After 8 hours a day or 48 hours a week of actual work.
- In Ramadan, Muslim workers have a limit of 6 hours a day or 36 hours a week, so overtime starts after that.
- Work on the weekly rest day, on Eid holidays or on official holidays is overtime from the first hour.
The overtime formula, step by step
- Hourly wage = monthly wage (basic + regular allowances) ÷ 240.
- Basic hourly wage = basic salary ÷ 240.
- One overtime hour = hourly wage + (basic hourly wage × 50%).
- Overtime pay = one overtime hour × number of overtime hours.
Some employers divide by 26 working days instead of 30, or pay only on basic salary. The divisor written in your contract or the company's approved work regulation is what applies. Our calculator uses the common 30 × 8 method.
Worked example
Basic salary 6,000 SAR, housing and transport 2,000 SAR, so the monthly wage is 8,000 SAR. The worker did 10 overtime hours this month.
| Step | Calculation | Result (SAR) |
|---|---|---|
| Hourly wage | 8,000 ÷ 240 | 33.33 |
| Basic hourly wage | 6,000 ÷ 240 | 25.00 |
| 50% of basic hour | 25 × 50% | 12.50 |
| One overtime hour | 33.33 + 12.50 | 45.83 |
| 10 overtime hours | 45.83 × 10 | 458.33 |
Two common mistakes: paying full wage × 1.5 (gives 500 SAR, too much) or basic × 1.5 (gives 375 SAR, too little). The law adds 50% of the basic hour to the full hour.
Ready table: value of one overtime hour
| Basic salary | Allowances | One overtime hour (SAR) |
|---|---|---|
| 3,000 | 1,000 | 22.92 |
| 4,000 | 1,500 | 31.25 |
| 6,000 | 2,000 | 45.83 |
| 8,000 | 2,500 | 60.42 |
| 10,000 | 3,500 | 77.08 |
Annual limit: 720 hours
The Implementing Regulations limit overtime to 720 hours a year (about 60 hours a month on average). More than that needs the worker's written consent.
Compensatory leave instead of overtime pay
Since the 2025 amendments, the employer may give paid leave instead of overtime money, but only if the worker agrees in writing. The rules:
- At least 1.5 hours of leave for every overtime hour.
- The leave should be used within 60 days, unless both sides agree otherwise.
- Compensatory leave is capped at 30 days a year.
- Any compensatory leave not used when the contract ends must be paid in cash.
Government employees (civil service)
Civil servants follow the Financial Rights and Benefits Regulations, not the Labor Law. The hourly rate is based on 155 working hours a month. Overtime pay for one day cannot exceed half of the daily basic salary on a working day, or the full daily basic salary on a weekend or holiday. Our calculator has a government mode for this.
If your employer does not pay overtime
- Keep a record of your hours: attendance system, emails, or written instructions to stay late.
- Ask HR in writing for the overtime calculation.
- If it is still not paid, file a labor complaint through the HRSD e-services (amicable settlement comes first).
Open the overtime calculator →
Frequently asked questions
How is overtime calculated in Saudi Arabia?
Each overtime hour = the normal hourly wage + 50% of the basic hourly wage. The hourly wage is the monthly wage divided by 240 (30 days × 8 hours).
Is overtime 1.5 times the salary in Saudi Arabia?
Not exactly. It is 1.5 times only if your whole wage is basic salary. With allowances, the extra 50% is taken from the basic salary only.
How much is one overtime hour on a 5,000 SAR salary?
If the whole 5,000 is basic salary: 5,000 ÷ 240 = 20.83, plus 50% (10.42) = 31.25 SAR per hour.
What is the maximum overtime per year?
720 hours a year. More than that needs the worker's consent.
Can my employer give leave instead of overtime pay?
Yes, only with your written agreement: at least 1.5 hours of leave per overtime hour, up to 30 days a year. Unused compensatory leave is paid at the end of the contract.
Official sources
- HRSD: Overtime rules in the Labor Law (Article 107)
- HRSD: Financial Rights and Benefits Regulations (civil service overtime)
This guide explains the general rules. It is not legal advice.