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Overtime Pay Calculator — Saudi Arabia
What is the Saudi overtime pay rate? Under Article 107 of the Saudi Labor Law (Royal Decree M/51), each overtime hour pays your hourly actual wage plus 50% of your hourly basic wage. That formula pays more than the two popular simplifications — 125% of actual wage or 150% of basic wage — whenever you receive fixed allowances like housing or transport.
Calculate your overtime pay ESTIMATE ONLY
How it works: hourly rates = monthly wage ÷ 240 (8 hours × 30 days — a widely used convention, not a statutory rule). Overtime hour pay = hourly actual wage + 50% of hourly basic wage (Article 107). Result = overtime hour pay × hours.
The correct formula (Article 107)
Article 107 of the Saudi Labor Law (Royal Decree M/51), administered by the Ministry of Human Resources and Social Development (HRSD), states that overtime hours are paid at the hourly wage plus 50% of the basic wage:
Overtime hour pay = hourly ACTUAL wage + 50% of hourly BASIC wage
- Basic wage — base salary, no allowances.
- Actual wage — basic wage plus fixed allowances you regularly receive (housing, transport, and similar).
As of October 2026, this reading is confirmed by the Labor Law text and independent law-firm explainers of Article 107.
The two wrong versions
Many payrolls and blog posts use a simplification. See the full overtime guide for the detailed breakdown:
| Published simplification | What it pays | Problem |
|---|---|---|
| 125% of actual wage | 1.25 × hourly actual wage | Drops the extra 50% of basic entirely — underpays whenever you receive allowances. |
| 150% of basic wage | 1.50 × hourly basic wage | Ignores your allowances completely — underpays whenever you receive allowances. |
Both match the real formula in only one case: when you receive no allowances at all (actual = basic), the correct formula genuinely simplifies to 150% of the hourly wage.
The 240-hour hourly conversion
The statute states the formula in hourly terms, so monthly wages are converted with:
Hourly wage = monthly wage ÷ 240
240 = 8 hours × 30 days. This is a widely used convention, not a rule written in the statute — confirm with your employer or HRSD how your company applies it.
2 worked examples
Example 1 — worker with allowances
Basic SAR 8,000/month + allowances SAR 2,000/month → actual wage SAR 10,000/month. 10 overtime hours.
| Step | Calculation | Result |
|---|---|---|
| Hourly basic wage | 8,000 ÷ 240 | SAR 33.33 |
| Hourly actual wage | 10,000 ÷ 240 | SAR 41.67 |
| Overtime hour pay | 41.67 + (0.5 × 33.33) | SAR 58.33 |
| 10 overtime hours | 10 × 58.33 | SAR 583.33 |
The 125%-of-actual shortcut would pay only SAR 520.83 for these 10 hours — SAR 62.50 less.
Example 2 — no allowances (the 150% exception)
Basic SAR 5,000/month, no allowances → actual wage SAR 5,000/month. 8 overtime hours.
| Step | Calculation | Result |
|---|---|---|
| Hourly wage (basic = actual) | 5,000 ÷ 240 | SAR 20.83 |
| Overtime hour pay | 20.83 + (0.5 × 20.83) | SAR 31.25 |
| 8 overtime hours | 8 × 31.25 | SAR 250.00 |
Here the answer is exactly 150% of the hourly wage — the one case where the popular figure is correct.
Compensatory leave instead of pay (2025)
As of October 2026, the 2025 amendment to the Labor Law allows the employer to grant paid compensatory leave days instead of overtime wages — but only with the worker’s consent. The implementing regulations set the details. Without your agreement, overtime must still be paid in money per the Article 107 formula. Never treat leave-in-lieu as automatic; if you want the cash, you are entitled to it.
Edge cases
- Holiday and Eid work: hours worked during official holidays and Eids are treated as overtime hours under Article 107 — they are not paid at the normal rate.
- Weekly-hours companies: if your company runs on a weekly basis, hours beyond the weekly criterion (normally 48) count as overtime.
- Hours actually worked: the formula applies to actual hours worked beyond your contractual norm — keep your own time records, because payroll disputes start with disputed hours, not disputed rates.
- Commission-heavy pay: variable commissions and one-off bonuses are generally excluded from the wage base — only fixed allowances join the basic wage in “actual wage”.
Frequently asked questions
How does this overtime calculator work?
Enter your monthly basic salary, your monthly actual wage (basic salary plus fixed allowances like housing and transport), and your overtime hours. The calculator converts both wages to hourly rates using monthly ÷ 240, applies the Article 107 formula — hourly actual wage plus 50% of hourly basic wage — and multiplies by your hours.
What is the correct Saudi overtime formula?
Article 107 of the Saudi Labor Law (Royal Decree M/51) sets the overtime rate as the hourly actual wage plus 50% of the hourly basic wage. With fixed allowances, this usually pays more than the 125%-of-actual or 150%-of-basic simplifications many payrolls use.
Why is my actual wage different from my basic wage?
Your basic wage is your base salary without allowances. Your actual wage is the basic wage plus the fixed allowances you regularly receive, such as housing and transport. The Article 107 formula needs both: actual wage at 100%, basic wage for the extra 50%.
Can my employer give time off instead of overtime pay?
Since the 2025 amendment, the employer may grant paid compensatory leave days instead of overtime wages — but only with the worker’s consent. The implementing regulations set the details. Without your agreement, overtime must be paid in money per the Article 107 formula.
Do hours worked on holidays or weekends count as overtime?
Yes. Hours worked during official holidays and Eids are treated as overtime hours under Article 107. If your company uses a weekly-hours basis, hours beyond the weekly criterion (normally 48) are overtime too.
My employer uses 125% or 150% — is that correct?
Not under the statute. Those are simplifications that only match the real formula when you receive no allowances (in which case the answer genuinely equals 150% of the hourly wage). Whenever you get fixed allowances, they underpay versus Article 107.
Why is this estimate only and not exact?
The calculator uses the statutory Article 107 formula with the standard monthly ÷ 240 hourly conversion, but your employer may apply a different hourly conversion, contract terms may vary, and individual cases differ. Always verify your figures with your employer, HRSD or Qiwa.
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