Overtime hours are an essential aspect of the Saudi Labor Law to protect employee rights and prevent exploitation, while allowing employers to manage work according to operational needs.
The law stipulates:
- Employers must pay 1.5x the hourly wage for each overtime hour.
- Alternatively, with employee consent, overtime may be compensated with paid leave.
- Any hours exceeding daily or weekly standards are considered overtime.
- All work on public holidays counts as overtime.
- Annual overtime cannot exceed 710 hours, unless the employee consents to additional hours (Article 22, Executive Regulations).
Practical Examples
- An employee works 8 hours/day and is required to work 2 extra hours daily for a week:
- Compensation is 2 hours × 1.5 pay per hour, or paid leave per agreement.
- An employee on a weekly standard (48 hours/week) works 6 extra hours in a week:
- These are counted as overtime and compensated with pay or compensatory leave.
- An employee works 8 hours on a public holiday:
- Hours are multiplied by 1.5 because they are considered overtime.
FAQ
1. What is the annual maximum for overtime hours?
710 hours, with possible increase if the employee agrees.
2. Can overtime be compensated with paid leave?
Yes, with mutual consent between employer and employee.
3. Are hours worked on public holidays considered overtime?
Yes, all hours on holidays are overtime.
4. How is overtime pay calculated?
Hourly wage + 50% of the base hourly pay.
5. Can overtime hours exceed the annual maximum?
Yes, but explicit employee consent is required.
How Can Sndk Help?
- Track overtime hours accurately and ensure legal compliance.
- Provide advice on employee rights for overtime compensation.
- Organize compensatory leave and record it officially to protect employee rights.
Start now with Sndk to secure your rights and ensure a fair workplace.