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Overtime calculation in KSA. The overtime will be paid at 150% of the normal wage rate as per Article 107 of Saudi Labor Law. If the organization is operated on the basis of weekly working hours, any work in excess of 48 hours will be considered overtime.
May 9, 2024 · In this article, we’ll show you how to easily calculate overtime pay in Saudi Arabia. We’ll cover the legal rules, the overtime pay rate, and give you a step-by-step guide to help you figure out the correct overtime compensation.
Overtime Hours. •The employer shall pay the employee for overtime working hours an additional amount equal to the hourly wage plus 50% of his basic wage. • If the establishment is operated on the basis of weekly working hours, the hours in excess of the hours taken as the criterion shall be deemed overtime hours.
Learn how to calculate overtime payment in Saudi Arabia according to labour law and payroll best practices. Find out the maximum working hours, types of overtime, exceptions, and formula for overtime calculation in KSA.
Every labour who works in Kingdom of Saudi Arabia wants to add extra income in their salaries by doing overtime so that they can support their families more effectively. Today we describe some of the rules which were applied on overtime and its calculation.
Mar 16, 2018 · Here is the formula to calculate Overtime in Saudi Arabia. Overtime calculation: Overtime rate per hour = Hourly wage x 1.5. Hourly Wage = Daily Wage / 8. Daily Wage = Monthly Basic Salary / 30. Annual Basic Salary = Monthly Basic Salary x 12. Example for Overtime Calculation: If Monthly Basic Salary is 6000 SR. Daily Wage = 6000 / 30 = 200 SR.
Calculating Overtime Compensation. In Saudi Arabia, the process of calculating overtime pay is governed by specific regulations that ensure employees are compensated fairly for work performed beyond normal working hours. Here is how overtime compensation is calculated based on different pay structures: Rates for Various Pay Structures
