How overtime is calculated in Saudi Arabia
Article 107: overtime pay = hourly wage + 50% of basic hourly wage, applied in practice as 150% of the basic hourly rate (basic ÷ 240). The same rate applies to rest days and Eid/National Day holidays. Overtime must not exceed 720 hours a year without MHRSD approval.
Worked example
SAR 6,000: hourly = 6,000 ÷ 30 ÷ 8 = 25. Ten hours of all overtime incl. rest days & holidays (150%) = 10 × 25 × 1.5 = SAR 375.
Overtime rates across the GCC
| Country | Weekday | Night | Rest day / holiday | Hourly basis |
|---|---|---|---|---|
| UAE | 125% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Qatar | 125% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Saudi Arabia | 150% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Oman | 125% | 150% | 200% | basic ÷ 30 ÷ 9 |
| Bahrain | 125% | 150% | 150% | full ÷ 30 ÷ 8 |
| Kuwait | 125% | — | 150% / 200% | full ÷ 26 ÷ 8 |
Frequently asked questions
What is the overtime rate in Saudi Arabia?
All overtime incl. rest days & holidays (150%). Legal basis: Saudi Labour Law, Art. 107.
How do I calculate my hourly rate for overtime in Saudi Arabia?
Monthly basic salary ÷ 30 days ÷ 8 hours. Example: SAR 6,000 → SAR 25 per hour; one weekday overtime hour = SAR 37.5.
Is overtime calculated on basic or gross salary in Saudi Arabia?
On basic salary. Allowances are excluded, which is why the overtime rate often looks low relative to total pay.
Is there a limit on overtime hours in Saudi Arabia?
No fixed daily cap in the law, but annual limits and health-and-safety rules apply. See the notes above.
Can my employer give time off instead of overtime pay?
For work on the weekly rest day most GCC laws allow a substitute day off (sometimes plus a premium). For ordinary weekday overtime the law requires payment; time-off-in-lieu arrangements need your agreement.
Are managers entitled to overtime?
Most GCC labour laws allow employers to exclude senior managerial or supervisory staff from working-hours provisions by contract or ministerial decision. Check your contract and job classification.
Is overtime pay subject to tax or social insurance?
There is no personal income tax in the GCC. For nationals, overtime is generally excluded from the pensionable wage used for GOSI/PASI/GRSIA contributions.