Overtime Pay Rules in Saudi Arabia: How to Calculate Your Extra Hours (Article 107)

If your employer asks you to work beyond 8 hours a day or 48 hours a week, you’re legally entitled to overtime pay. But many Indian workers in Saudi Arabia either don’t know this, or accept less than what the law requires.

This guide covers the exact overtime rates, calculation formulas, and your rights under Articles 107 and 108 of Saudi Labor Law.

Standard Working Hours in Saudi Arabia

Before understanding overtime, know the baseline:

Rule	Details
Daily limit	8 hours per day
Weekly limit	48 hours per week
Ramadan (Muslim workers)	6 hours per day (36 hours/week)
Maximum time at the workplace	12 hours a day, including breaks (Article 101)
Rest break	30 minutes after 5 continuous hours
Weekly rest day	Friday (or as agreed in contract)

Key point: If you work more than 8 hours in a day or more than 48 hours in a week, those extra hours are overtime — and you must be paid extra.

Overtime Pay Rates — Articles 107 & 108

Article 107 — Regular Overtime (Extra Hours on Working Days)

Rate: Your actual hourly wage + 50% of your basic hourly wage. If your whole salary is basic (no allowances), this works out to 150% of your hourly rate.

Formula:

Overtime per hour = (Actual monthly wage ÷ 30 ÷ 8) + 50% × (Basic monthly wage ÷ 30 ÷ 8)

Example: Monthly salary SAR 6,000, all of it basic (no allowances)

Regular hourly rate: SAR 6,000 ÷ 30 ÷ 8 = SAR 25/hour
Overtime rate: SAR 25 × 1.5 = SAR 37.50/hour
If you work 2 hours overtime daily: SAR 37.50 × 2 = SAR 75/day extra
Monthly overtime (22 working days): SAR 75 × 22 = SAR 1,650 extra

Night Work

Rate: The Labor Law sets no separate night premium. Extra hours at night are paid like any other overtime hour (actual hourly wage + 50% of basic hourly wage).

Important: Night overtime is NOT double pay under Saudi law. Normal hours worked at night are paid at your normal rate unless your contract gives a night allowance.

Friday & Public Holiday Work (Article 107)

Rate: Same overtime formula — actual hourly wage + 50% of basic hourly wage

Under Article 107, all hours worked on official holidays and Eid holidays count as overtime. Hours worked on your weekly rest day (Friday, or the rest day in your contract) are also treated as overtime.

Official holidays in the private sector (HRSD):

Founding Day (February 22) — 1 day
Saudi National Day (September 23) — 1 day
Eid al-Fitr — 4 days
Eid al-Adha — 4 days (starting from the Day of Arafah)

What Salary Is Used for Overtime Calculation?

This is where many workers lose money. The overtime hour has two parts, and they use different salary figures (HRSD awareness guide, 2025):

Part 1 — the normal hourly wage: based on your actual wage (basic + allowances such as housing and transport)
Part 2 — the 50% premium: based on your basic wage only — allowances are not included unless your contract or the company’s internal regulations say so

HRSD example: Basic SAR 4,000, actual wage (basic + allowances) SAR 6,000

Hourly wage on actual wage: 6,000 ÷ 30 ÷ 8 = SAR 25
Hourly wage on basic: 4,000 ÷ 30 ÷ 8 = SAR 16.67
Overtime hour: 25 + (16.67 × 0.5) = SAR 33.33
3 overtime hours ≈ SAR 100

Common violation: Some employers pay only 150% of the basic hourly wage and ignore allowances in Part 1. If your contract says basic SAR 4,000 + housing SAR 1,000, the first part of each overtime hour should be based on SAR 5,000, and the 50% premium on SAR 4,000. If this happens to you, file a complaint with HRSD.

Maximum Overtime Allowed

Under Article 22 of the Executive Regulations, overtime may not exceed 720 hours per year (about 60 hours/month). However:

With worker consent, additional hours beyond 720 can be permitted
Keep written proof of any consent you give

Article 108: the daily hour and break limits (Articles 98 and 101) do not apply to certain categories of workers listed in Article 108, such as people in senior managerial positions with employer authority. Check the article if your role may fall in one of them.

Overtime vs Compensatory Leave

Since the Labor Law amendments took effect on 19 February 2025, Article 107 gives employers an alternative to paying overtime cash:

Option 1: Pay overtime in cash (actual hourly wage + 50% of basic hourly wage) Option 2: Give compensatory paid leave — only with your consent

HRSD rules for compensatory leave:

At least 1.5 hours of leave for each overtime hour
To be used within 60 days of the overtime, unless both sides agree otherwise
No more than 30 days of compensatory leave a year

Important: The employer cannot force compensatory leave instead of overtime pay. They need your agreement. If they do it without consent, you can file a complaint.

Real Calculation Examples

The three examples below assume the whole salary is basic (no allowances), so the overtime hour equals 1.5 × the hourly rate. If you have allowances, use the two-part formula above.

Example 1: Indian worker, SAR 4,500/month, works 2 hours overtime daily

Hourly rate: SAR 4,500 ÷ 30 ÷ 8 = SAR 18.75
Overtime rate: SAR 18.75 × 1.5 = SAR 28.13/hour
Daily overtime: SAR 28.13 × 2 = SAR 56.25
Monthly (22 days): SAR 56.25 × 22 = SAR 1,237.50 extra

Example 2: Indian worker, SAR 7,000/month, works 4 hours overtime on a Friday

Hourly rate: SAR 7,000 ÷ 30 ÷ 8 = SAR 29.17
Friday overtime rate: SAR 29.17 × 1.5 = SAR 43.75/hour
4 hours Friday work: SAR 43.75 × 4 = SAR 175 for the day

Example 3: Indian worker, SAR 5,000/month, works 10 hours/day (2 hours OT)

Regular hours: SAR 5,000 ÷ 30 ÷ 8 = SAR 20.83/hour
Overtime: SAR 20.83 × 1.5 = SAR 31.25/hour
Daily OT: SAR 31.25 × 2 = SAR 62.50
Monthly (22 days): SAR 62.50 × 22 = SAR 1,375 extra
Total monthly: SAR 6,375 (SAR 5,000 + SAR 1,375)

Ramadan Overtime Rules

During Ramadan, working hours are reduced to 6 hours/day for Muslim workers. If a Muslim worker works beyond 6 hours during Ramadan:

Hours beyond the reduced 6-hour Ramadan day (or 36 hours a week) are overtime and must be paid under Article 107

For non-Muslim workers: Standard 8-hour rules apply during Ramadan. No reduction.

Practical note: Many companies in Saudi Arabia reduce all workers’ hours during Ramadan regardless of religion. Check with your HR department what your company’s Ramadan policy is.

Your Rights as a Worker

You Have the Right To:

Receive overtime pay (actual hourly wage + 50% of basic hourly wage) for all extra hours
Agree or not agree to compensatory leave instead of cash
Ask for records of your working hours and keep your own
File a complaint if overtime is unpaid or underpaid

What Your Employer Must Do:

Record all working hours accurately
Pay overtime at the correct rate (actual hourly wage + 50% of basic)
Not keep you at the workplace more than 12 hours a day (including breaks)
Provide a 30-minute break after 5 continuous hours
Get your consent before replacing overtime pay with compensatory leave

How to File a Complaint for Unpaid Overtime

If your employer owes you overtime money:

Step 1: Gather evidence — pay slips, time records, messages showing extra hours worked

Step 2: Report the violation to HRSD (the “Beneficiary Page” complaints service or call 19911), or start an amicable settlement request on the HRSD Wady platform

Step 3: If no settlement is reached, file the case with the Labor Court through the Najiz platform

Time limit: Under Article 234, the Labor Court will not hear a claim filed more than 12 months after your employment ends (unless you have an excuse the court accepts). Don’t wait — evidence is easier to gather while you are still employed.

Common Overtime Violations by Employers

Paying overtime on basic salary only — Should include fixed allowances
Not paying overtime at all — Simply recording regular hours
Forcing compensatory leave instead of paying overtime cash (it needs your consent)
Misrecording hours — Writing 8 hours when you worked 10
No time records — Making it impossible to prove overtime worked
Retaliating against workers who claim overtime — This is illegal

ESB (End of Service Benefit) Calculation Guide — Your gratuity rights
Download Qiwa Contract — Check your salary details
Sick Leave + Annual Leave Rules — Your leave entitlements
Jobs & Employment Guide — Complete employment guide

FAQ

How much is overtime pay in Saudi Arabia? Your actual hourly wage plus 50% of your basic hourly wage. If your whole salary is basic and your hourly rate is SAR 25, overtime is SAR 37.50/hour.

Can my employer make me work overtime without paying? No. Overtime must be paid (actual hourly wage + 50% of basic), or compensated with paid leave if you agree. Unpaid overtime is a violation.

Is night shift overtime double pay? No. Night overtime uses the same overtime formula. There’s no additional night premium under the Saudi Labor Law.

What if I refuse overtime? The Labor Law does not set out a general right to refuse overtime, so check your contract and your company’s internal work regulations. Overtime must stay within the legal limits, and any you do work must be paid.

How many overtime hours are allowed per year? Maximum 720 hours per year. Can exceed with worker consent.

Do non-Muslim workers get reduced hours during Ramadan? No. Ramadan hours reduction (6 hours/day) applies only to Muslim workers. Non-Muslim workers follow standard 8-hour rules.

Can my employer record overtime as regular hours? No. This is a violation. Keep your own records (photos of time sheets, messages) as evidence.

What if my employer calculates overtime on basic salary only? If they pay only 150% of basic and ignore your allowances, that is underpayment: the normal-wage part of each overtime hour uses your actual wage (basic + allowances); only the 50% premium uses basic. File a complaint with HRSD.

This article reflects the Saudi Labor Law as amended (in force since 19 February 2025), checked in November 2026. Rules may change — always verify with the Ministry of Human Resources (hrsd.gov.sa) or call 19911 for the latest information.

Official Sources:

Overtime Pay Rules in Saudi Arabia: How to Calculate Your Extra Hours (Article 107)

Standard Working Hours in Saudi Arabia

Overtime Pay Rates — Articles 107 & 108