Overtime Pay Rules in Saudi Arabia: How to Calculate Your Extra Hours (Article 107 & 108)

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:

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: Hourly wage + 50% of basic wage = 150% of your regular hourly rate

Formula:

Overtime per hour = (Monthly Salary ÷ 30 ÷ 8) × 1.5

Example: Monthly salary SAR 6,000

• 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

Article 108 — Night Work Overtime (9 PM to 4 AM)

Rate: Same as regular overtime — 150% of your regular hourly rate

Important: Night work overtime is NOT double pay. It’s the same 150% rate as regular overtime. Many workers mistakenly think night shifts pay more — they don’t under Saudi law.

Article 108 — Friday & Public Holiday Work

Rate: Hourly wage + 50% of basic wage = 150% of your regular hourly rate

All hours worked on your weekly rest day (Friday) or public holidays are considered overtime and paid at 150%.

What counts as public holidays:

• Saudi National Day (September 23)
• Eid al-Fitr (end of Ramadan)
• Eid al-Adha (Festival of Sacrifice)
• Any other official government holidays

What Salary Is Used for Overtime Calculation?

This is where many workers lose money. Overtime should be calculated on your full contractual salary — including fixed allowances:

• ✅ Basic salary
• ✅ Housing allowance (if fixed)
• ✅ Transport allowance (if fixed)
• ❌ Overtime pay itself (not included)
• ❌ Variable bonuses or commissions

Common violation: Some employers calculate overtime only on basic salary. If your contract says basic SAR 4,000 + housing SAR 1,000, overtime should be based on SAR 5,000 — not SAR 4,000. If this happens to you, file a complaint with HRSD.

Maximum Overtime Allowed

Saudi Labor Law limits overtime to 720 hours per year (about 60 hours/month). However:

• With worker consent, additional hours beyond 720 can be permitted
• The employer must document the consent
• Emergency situations may require extra hours, but peak business periods don’t qualify as emergencies

Overtime vs Compensatory Leave

Under Article 107, employers have an alternative to paying overtime cash:

Option 1: Pay overtime at 150% rate Option 2: Give compensatory paid leave (with your consent)

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

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 6-8: Paid at regular rate (part of standard 8-hour day compressed)
• Hours beyond 8: Paid at overtime rate (150%)

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:

1. Receive overtime pay at 150% rate for all extra hours
2. Refuse overtime (except in genuine emergencies) without disciplinary action
3. Request records of your working hours from your employer
4. File a complaint if overtime is unpaid or underpaid

What Your Employer Must Do:

1. Record all working hours accurately
2. Pay overtime at the correct rate (150%)
3. Not exceed 12 hours of work in a single day
4. Provide a 30-minute break after 5 continuous hours
5. 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: File a complaint on Qiwa (qiwa.sa) or call HRSD at 19911

Step 3: Visit your nearest Labor Office if needed

Step 4: If unresolved, the case goes to the Labor Dispute Settlement Committee

Time limit: You have 12 months from the date the overtime was owed to file a claim.

Common Overtime Violations by Employers

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

Related Articles

• 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? 150% of your regular hourly rate. If 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 at 150% rate, or compensatory leave with your consent. Forcing unpaid overtime is a violation.

Is night shift overtime double pay? No. Night work overtime is 150%, same as regular overtime. There’s no additional night premium under Saudi law.

What if I refuse overtime? You can refuse overtime except in genuine emergencies. Your employer cannot discipline or terminate you for refusing.

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? This is a violation. Overtime should be calculated on your full contractual salary (basic + fixed allowances). File a complaint with HRSD.

This article reflects Saudi Labor Law as of June 2026. Rules may change — always verify with the Ministry of Human Resources (hrsd.gov.sa) or call 19911 for the latest information.

Official Sources:

• HRSD — Overtime Hours Article
• Embassy of India, Riyadh — Saudi Labour Law Basic Points
• Article 107 — Saudi Labor Law (Full Text)