Aqid ERPOvertime under the Saudi Labour Law
Article 107 of the Labour Law sets overtime pay at the hourly wage plus 50% of the basic wage for each extra hour: an overtime hour is worth one and a half times the ordinary hour. Hours worked on Eid holidays and other official holidays count as overtime.
The ordinary hour is derived from the monthly basic wage: a month is counted as 30 days and a working day as 8 hours, so the hourly wage is the basic ÷ 30 ÷ 8, that is the basic ÷ 240. Allowances are left out of the hour, as the law computes it on the basic wage.
A worked example
An employee on a basic wage of SAR 4,800 works 10 hours of overtime in the month.
| Hourly wage: 4,800 ÷ 240 | 20.00 |
|---|---|
| Overtime hour: 20.00 × 1.5 | 30.00 |
| 10 hours | 300.00 |
What changes the figure
A contract may promise more than the law, never less. Some employers compute the hour on the gross wage, which is more generous; the calculator takes the legal minimum, on the basic wage. Overtime beyond what the law permits in a day or a year is a labour-office matter, not an arithmetic one. Aqid ERP payroll records overtime hours per employee and pays them at this rate, or at the contract's if it is higher.